Neuralink, a brain implant startup founded by Elon Musk, has relocated its formal headquarters from Delaware to Nevada. This modification follows Musk’s legal troubles in Delaware, which included issues with compensation and his acquisition of Twitter.
Following Musk’s January tweet suggesting that no company should incorporate in Delaware, the action was taken. He wrote, “Never incorporate your company in Delaware.”
Judge Kathaleen McCormick of the Delaware Court of Chancery commented on the $56 billion remuneration of the CEO of Tesla after Musk’s statement. It was described as “an unfathomable sum” by Judge McCormick.
Elon Musk has reincorporated several companies outside of Delaware before Neuralink. Previously, when he renamed the firm from Twitter, the wealthiest man in the world transferred the incorporation of X from Delaware to Nevada. Company executives are more shielded from investor lawsuits by Nevada’s corporate laws.
According to a notice submitted to the company’s stockholders and the office of the Nevada secretary of state, the transfer from Delaware to Nevada was finished on February 8.
After reviewing the notice, Bloomberg was able to advise stockholders that their outstanding shares in the Delaware corporation would now be combined with their outstanding shares in the Nevada corporation.
Philip Mao, a lawyer for Neuralink, declined to comment to Bloomberg.
Musk said on Twitter last week that his business, Neuralink, had successfully implanted a gadget into a person for the first time. People with severe injuries will be able to utilize computers with this device only by thinking. According to Musk, in the future, everyone will be able to operate computers, phones, and a host of other gadgets just by thinking.
Delaware: US capital of incorporation
Delaware is well-known for being the primary site for numerous businesses to formally establish themselves. Delaware is home to more than 70% of Fortune 500 businesses in the United States due to its swift courts and knowledgeable judges in business law. They resolve disputes and large-scale corporate transactions without a jury. Delaware is a destination for international businesses seeking solutions to their business issues.
