After losing $56 billion in compensation at Tesla in a lawsuit, Elon Musk He began a crusade against the state of Delaware, from where he has just moved the headquarters of another of his companies, SpaceX.
The Delaware Chancery Court (DCC), one of the three constitutional courts of the State, specialized in commercial law, it has been considered for more than a century as one of the pillars of capitalism in the United States, since it is lThe jurisdiction of reference for nearly two-thirds of the 500 largest companies in the country.
Income data
According to data of this state in the east of the country, About 80% of the stock market entries were registered in its territory: Companies trust in the experience of their judges and the stability of their legal system.
But a recent DCC decision against Musk It infuriated the businessman, who considers the court a refuge for ultra-Orthodox lawyers and judges who stand between him and his business vision and strategic decisions. At the end of January, a judge ruled in favor of a shareholder of the manufacturer Teslathat requested the cancellation of a compensation plan agreed to in 2018 for Musk, founder of the company, which reached 56,000 million dollars.
Elon Musk’s post against Delaware
“SpaceX moved from Delaware to Texas”Musk announced Wednesday on his X network (formerly Twitter), adding: “If your company is still registered in Delaware, I recommend moving it to another state as soon as possible.”
First state to ratify the United States Constitution, Delaware and its courts They always played a central role in American industry. The DCC is “almost a de facto government agency,” setting the rules for companies, according to Omari Scott Simmons, a law professor at George Washington University.
How Delaware works
Pillar of entrepreneurship, It is one of the reference institutions regarding the internal functioning of American multinationals.
“There is something very curious in the United States, which means that if you create a company, you can choose which laws will apply and which court will be in charge of their application,” highlights Simon Lorne, vice president and legal director of Millenium Management.
“The only alternative would be federal legislation, but I think that would be a mistake for the entire system. And Delaware did a very good job in the last 100 years“he added.
The court’s jurisprudence is more than a century old and companies abide by the decisions of the DCC. Furthermore, judges are not elected as in many states, nor are they appointed by politicians, but rather chosen by non-partisan commissions that consider their knowledge and training, highlights Omari Scott Simmons.
SpaceX’s move to Texas
The fMusk’s trouble led him to move SpaceX to Texas, one of the rare states, along with Nevada, that is trying to build a legal system capable of competing with Delaware. Musk also moved his start-up that manufactures brain implants, Neuralink, to Nevada, where it set up X’s headquarters after purchasing it.
had also displaced Tesla from California to Texas. In all cases except Tesla, the companies are not publicly traded and Musk has full control of the firms. In cases of publicly held companies, shareholders may have the possibility of blocking a change of headquarters.
Source: Ambito
