SpaceX Files for IPO with Musk Holding Majority Voting Control

SpaceX made its IPO filing public on Wednesday. The document outlines a dual-class share structure that will give Elon Musk more than 50 percent of the voting power once the company trades publicly. Musk will serve as CEO, CTO, and chairman of the board after the offering.

The filing states that regular shareholders will not have the same corporate governance protections required of most Nasdaq-listed companies.

SpaceX will qualify as a controlled company under stock exchange rules. This status allows the company to exempt itself from requirements for independent board oversight. 6 percent of the Class B super-voting shares that will not be offered to the public. The structure gives him authority over decisions that require shareholder approval, including mergers and acquisitions.

Shareholders must own at least 3 percent of the company to file derivative lawsuits. 75 trillion, that threshold equals roughly $52 billion. Most legal disputes will be directed to the Texas Business Court or mandatory arbitration. The company is incorporated in Texas, which has a more permissive regulatory environment than Delaware.

Musk received a compensation package of 1 billion Class B shares. 5 trillion valuation and establishes a permanent human colony on Mars with at least one million inhabitants. SpaceX secured changes to Nasdaq rules that will allow faster inclusion in the Nasdaq 100 index. Large institutional investors typically purchase shares of companies added to major indexes.