SpaceX began its public listing process by publishing S-1 paperwork for its anticipated IPO. The filing describes how the company differs from a traditional public company by concentrating voting control with Elon Musk. Musk is set to serve as CEO, chief technical officer, and chairman of the board, and he will control board elections. The document states that Musk’s majority ownership of Class B shares allows him to elect, remove, or fill vacancies among Class B directors. SpaceX will also use dual stock classes, with Class B shares carrying greater voting power than shares held by the general public. This structure is intended to limit public influence over corporate matters and director elections.
"As the holder of a majority of our outstanding shares of Class B common stock, Mr. Musk will be able to elect, remove or fill any vacancy among the Class B Directors. Founders want control over their board of directors because it makes key decisions about the company, including the power to fire the CEO, decide their compensation, and decide whether to sell the company."
"Musk will serve as the company's CEO, chief technical officer, and chairman of its board and will control the election of SpaceX's board of directors. In 2018, Musk stepped down as Tesla's chair after the Securities and Exchange Commission charged him with misleading investors by tweeting that he was considering taking the company private. Musk paid $20 million to settle the suit."
"Our dual class structure concentrates voting control with Mr. Musk and other holders of our Class B common stock. This will limit or preclude your ability to influence corporate matters and the election of directors. SpaceX will offer two classes of stock, creating a tier of shares for insiders and giving them greater voting power than the general public."
Read at www.businessinsider.com
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