3 ms·
Putting the principal idea of “publicly owned” in its head.
by hbarka 2mo ago
Putting the principal idea of “publicly owned” in its head.
- laughing_man 2mo agoNot at all. Ownership and voting rights are two different things. Musk can't, for example, declare a dividend that pays his shares out more than the common shares.
- kasey_junk 2mo agoHe absolutely can, but would expect to be sued in court. In Texas, where we don’t know what shareholder protections exist because the case law is so immature compared to Delaware. But Texas is making a push very specifically around giving less shareholder protections.
- laughing_man 2mo agoWell, okay, he can do lots of illegal stuff that's going to get punished in the courts. There's no way something like that would survive SEC scrutiny, I don't care what state you're in.
- kasey_junk 2mo agoA) it’s not the SEC’s jurisdiction. It’s the state of incorporation that covers shareholder rights. B) we literally don’t know if it’s illegal or not yet. The reason investors like Delaware is that there is tons of decided case law and courts that are expert and fast at deciding these issues so you’d get quick predictable answers. But those answers have lots of rights to minority shareholders which the modern dictator founders hated. So Texas made a play for them with the specific pitch that they will give much less support of minority shareholders.
- dgellow 2mo agoThe SEC his buddy trump gutted?
- laughing_man 2mo agoOr not.