Elon Musk takes Neuralink out of Delaware, reincorporates brain implant company in Nevada

Elon Musk’s company Neuralink, which works on brain implants, moved its official business location from Delaware to Nevada. This change comes after Musk faced legal issues in Delaware, including problems related to pay and his purchase of Twitter.

The move comes after Musk’s tweet in January that no company should incorporate in Delaware. “Never incorporate your company in the state of Delaware,” he wrote.

Musk’s comment was followed by the Delaware Court of Chancery’s Judge Kathaleen McCormick’s remark on the Tesla CEO’s $56-billion salary. Judge McCormick termed called it “an unfathomable sum”.

Neuralink is not the first Elon Musk company that has been reincorporated outside of Delaware. The richest man in the world earlier moved the incorporation of X from Delaware to Nevada when he renamed the company from Twitter. Nevada’s business laws give company leaders stronger protection from lawsuits by investors.

The shift Delaware to Nevada was completed on February 8, according to the office of the Nevada secretary of state and a notice sent to shareholders in the company. 

The notice sent to shareholders, which was reviewed by Bloomberg, informed them that their outstanding shares in the Delaware corporation would now be incorporated into outstanding shares in the Nevada corporation.

Neuralink lawyer Philip Mao declined to comment to Bloomberg.

Last week, Musk announced on Twitter that his company Neuralink had put a device into a human for the first time. This device is designed to let people with serious injuries use computers just by thinking. Musk believes that, in the future, the device will allow anyone to control phones, computers and many other devices simply by thinking.

Delaware: Incorporation capital of US

Delaware is famous for being the main location for many companies to officially set up. Over 70% of Fortune 500 companies in the US are registered in the state because Delaware’s courts are quick and the judges know a lot about business law. They handle big business deals and disagreements without a jury. Companies from other countries also go to Delaware for solving their business problems.

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here.
Download The Mint News App to get Daily Market Updates & Live Business News.


Published: 10 Feb 2024, 06:47 AM IST

Source link