Sat. May 25th, 2024

Musk shifts Neuralink incorporation from Delaware to Nevada as he rails against $55 billion pay ruling<!-- wp:html --><p>Elon Musk.</p> <p class="copyright">Philip Pacheco / AFP via Getty Images</p> <p>Elon Musk has pulled his brain implant company out of Delaware amid legal frustrations.Musk has reincorporated the company in Nevada."Never incorporate your company in the state of Delaware," he wrote on X, formerly Twitter.</p> <p>Elon Musk has shifted the incorporation location of his brain-chip implant company Neuralink out of Delaware, reincorporating it in Nevada, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-02-09/musk-s-neuralink-ditches-delaware-reincorporates-in-nevada?leadSource=uverify%20wall" rel="noopener">Bloomberg</a> reported.</p> <p>The company completed the move on Thursday, it said in a notice sent to shareholders, per the report.</p> <p>It comes after a series of frustrating legal setbacks for Musk in "The First State," including a judge <a target="_blank" href="https://www.businessinsider.com/elon-musk-delaware-battle-goes-beyond-55-billion-pay-package-2024-1#:~:text=Elon%20Musk%20just%20had%20his,confidence%20in%20the%20Diamond%20State." rel="noopener">striking down the Tesla CEO's $55 billion pay package</a>.</p> <p>Musk quickly made his feelings clear about the decisions in a series of posts on X, formerly Twitter.</p> <p>"Never incorporate your company in the state of Delaware," he said in <a target="_blank" href="https://twitter.com/elonmusk/status/1752455348106166598" rel="noopener">one post</a>.</p> <p>"I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters," he <a target="_blank" href="https://twitter.com/elonmusk/status/1752486201083543842" rel="noopener">added</a>.</p> <p>Musk previously moved the incorporation location of X to Nevada from Delaware after he changed its name, Bloomberg reported.</p> <p>Musk has also signaled his intent to reincorporate Tesla, again moving the company out of Delaware.</p> <p>Following the ruling to void Musk's $55 billion payout, the Tesla CEO shared a poll on his X profile, asking if the company should move its incorporation to Texas.</p> <p>"The public vote is unequivocally in favor of Texas," he <a target="_blank" href="https://twitter.com/elonmusk/status/1752922071229722990" rel="noopener">wrote</a> after the results showed those who responded were 87.1% in favor of the move. "Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas."</p> <p>Delaware, home to 1.3 million legal entities, is known as the US's incorporation capital, with more than 60% of the nation's Fortune 500 companies incorporated there, according to the <a target="_blank" href="https://corplaw.delaware.gov/why-businesses-choose-delaware/" rel="noopener">state's official website</a>.</p> <p>The state is attractive to large businesses thanks to long-standing legal precedents, access to expert corporate lawyers, and the state's corporate law statute offering "predictability and stability."</p> <p class="copyright">Getty Images</p> <p>Neuralink carried out its first human brain implant in January, with the patient said to be recovering well, <a target="_blank" href="https://twitter.com/elonmusk/status/1752098683024220632" rel="noopener">Musk</a> said.</p> <p>The company says its initial goal is to find a way of allowing humans to control a computer keyboard or cursor with their thoughts.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/neuralink-shifts-delaware-nevada-musk-rails-against-pay-ruling-2024-2">Business Insider</a></div><!-- /wp:html -->

Elon Musk.

Elon Musk has pulled his brain implant company out of Delaware amid legal frustrations.Musk has reincorporated the company in Nevada.”Never incorporate your company in the state of Delaware,” he wrote on X, formerly Twitter.

Elon Musk has shifted the incorporation location of his brain-chip implant company Neuralink out of Delaware, reincorporating it in Nevada, Bloomberg reported.

The company completed the move on Thursday, it said in a notice sent to shareholders, per the report.

It comes after a series of frustrating legal setbacks for Musk in “The First State,” including a judge striking down the Tesla CEO’s $55 billion pay package.

Musk quickly made his feelings clear about the decisions in a series of posts on X, formerly Twitter.

“Never incorporate your company in the state of Delaware,” he said in one post.

“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” he added.

Musk previously moved the incorporation location of X to Nevada from Delaware after he changed its name, Bloomberg reported.

Musk has also signaled his intent to reincorporate Tesla, again moving the company out of Delaware.

Following the ruling to void Musk’s $55 billion payout, the Tesla CEO shared a poll on his X profile, asking if the company should move its incorporation to Texas.

“The public vote is unequivocally in favor of Texas,” he wrote after the results showed those who responded were 87.1% in favor of the move. “Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas.”

Delaware, home to 1.3 million legal entities, is known as the US’s incorporation capital, with more than 60% of the nation’s Fortune 500 companies incorporated there, according to the state’s official website.

The state is attractive to large businesses thanks to long-standing legal precedents, access to expert corporate lawyers, and the state’s corporate law statute offering “predictability and stability.”

Neuralink carried out its first human brain implant in January, with the patient said to be recovering well, Musk said.

The company says its initial goal is to find a way of allowing humans to control a computer keyboard or cursor with their thoughts.

Read the original article on Business Insider

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