Assuming it's technically possible, is there any legal reason why Elon
Muck could not just turn X off ?
On 6/5/2025 2:43 PM, Jethro_uk wrote:
Assuming it's technically possible, is there any legal reason why Elon Muck could not just turn X off ?
"X" was known as "X-Corp" and is now owned by "xAI" While that is a "private" company, shares are owned by various people and financial companies.
Lots of share holders would be very upset if "X" shut down and would
probably sue Musk and the xAI board of directors.
Recent news: Billionaire Elon Musk’s AI startup, xAI, is reportedly launching a $300 million share sale that values the company at $113
billion.
On 6/5/2025 6:03 PM, Roy wrote:
On 6/5/2025 2:43 PM, Jethro_uk wrote:
Assuming it's technically possible, is there any legal reason why Elon >> > Muck could not just turn X off ?
;
"X" was known as "X-Corp" and is now owned by "xAI" While that is a
"private" company, shares are owned by various people and financial
companies.
Lots of share holders would be very upset if "X" shut down and would
probably sue Musk and the xAI board of directors.
Recent news: Billionaire Elon Musk’s AI startup, xAI, is reportedly
launching a $300 million share sale that values the company at $113
billion.
They could certainly and probably would sue Musk if he just pulled the
plug on the company. But as the principal stockholder and (I believe)
chief executive answer, I think he does have full legal authority to
shut the company down if he wants to do that. I'm sure employees and suppliers with contracts could sue for payment and things like that, but otherwise I don't know of a good legal theory that would force an owner
to keep a company running that is not tied to public safety or something
like that.
On 6/5/2025 2:43 PM, Jethro_uk wrote:
Assuming it's technically possible, is there any legal reason why
Elon Muck could not just turn X off ?
"X" was known as "X-Corp" and is now owned by "xAI" While that is a "private" company, shares are owned by various people and financial companies.
Lots of share holders would be very upset if "X" shut down and would
probably sue Musk and the xAI board of directors.
Recent news: Billionaire Elon Musk’s AI startup, xAI, is reportedly launching a $300 million share sale that values the company at $113
billion.
On 6/5/2025 6:03 PM, Roy wrote:
On 6/5/2025 2:43 PM, Jethro_uk wrote:
Assuming it's technically possible, is there any legal reason why Elon >> > Muck could not just turn X off ?
;
"X" was known as "X-Corp" and is now owned by "xAI" While that is a
"private" company, shares are owned by various people and financial
companies.
Lots of share holders would be very upset if "X" shut down and would
probably sue Musk and the xAI board of directors.
Recent news: Billionaire Elon Musk’s AI startup, xAI, is reportedly
launching a $300 million share sale that values the company at $113
billion.
They could certainly and probably would sue Musk if he just pulled the
plug on the company. But as the principal stockholder and (I believe)
chief executive answer, I think he does have full legal authority to
shut the company down if he wants to do that. I'm sure employees and suppliers with contracts could sue for payment and things like that, but otherwise I don't know of a good legal theory that would force an owner
to keep a company running that is not tied to public safety or something
like that.
But just shutting down a corporation that is making a profit... The shareholders would undoubtedly sue for an order requiring Musk to keep
it going.
On Sat, 07 Jun 2025 11:13:02 -0700, Barry Gold wrote:
But just shutting down a corporation that is making a profit... The
shareholders would undoubtedly sue for an order requiring Musk to keep
it going.
But that implies that at some point when Musk says "Shut it down",
whatever part of the organisation that would do that has the agency to
reply "No, Mr. Musk. Instead we are going to file a court order telling
you that you can't do that because of the shareholders."
Or are company employees subject to a sort of Geneva convention whereby
they have to refuse to follow instructions that might hurt shareholders ?
And if so, how is Musk allowed to reduce the value of Tesla ?
The question is whether X is a private or public corporation. I'm under
the assumption it is considered privately owned by Musk's holding
company (also privately held), so I think legally Musk can shut it down.
But there is no question he can and most likely will be sued by
employees with contracts, suppliers with contracts, minority
shareholders, etc.
On 6/5/2025 7:13 PM, Rick wrote:
On 6/5/2025 6:03 PM, Roy wrote:
On 6/5/2025 2:43 PM, Jethro_uk wrote:
Assuming it's technically possible, is there any legal reason whyElon
Muck could not just turn X off ?
;
"X" was known as "X-Corp" and is now owned by "xAI" While that is a
"private" company, shares are owned by various people and financial
companies.
Lots of share holders would be very upset if "X" shut down and would
probably sue Musk and the xAI board of directors.
Recent news: Billionaire Elon Musk’s AI startup, xAI, is reportedly
launching a $300 million share sale that values the company at $113
billion.
They could certainly and probably would sue Musk if he just pulled the
plug on the company. But as the principal stockholder and (I believe)
chief executive answer, I think he does have full legal authority to
shut the company down if he wants to do that. I'm sure employees and
suppliers with contracts could sue for payment and things like that,
but otherwise I don't know of a good legal theory that would force an
owner to keep a company running that is not tied to public safety or
something like that.
A corporation that is publicly held - that is, not restricted to a few shareholders - is supposed to be run for the benefit of those
shareholders. In particular, it should make a profit - the largest
profit the executives can manage, allowing for the fact that s--t
happens: a product line or other change might have unexpected consequences.
But just shutting down a corporation that is making a profit... The shareholders would undoubtedly sue for an order requiring Musk to keep
it going. He wouldn't have to do that personally - he could resign as
CEO and leave it up to the Board of Directors to choose another one. And
as majority shareholder he could tell the Board to initiate a buyback: forcing the shareholders to accept a payment in return for their shares.
That would have to be fairly close to the current market value. He could
also sell it to another company, again at a price that is fair to the
public shareholders.
On Sat, 07 Jun 2025 11:13:02 -0700, Barry Gold wrote:
But just shutting down a corporation that is making a profit... The
shareholders would undoubtedly sue for an order requiring Musk to keep
it going.
But that implies that at some point when Musk says "Shut it down",
whatever part of the organisation that would do that has the agency to
reply "No, Mr. Musk. Instead we are going to file a court order telling
you that you can't do that because of the shareholders."
Or are company employees subject to a sort of Geneva convention whereby
they have to refuse to follow instructions that might hurt shareholders ?
And if so, how is Musk allowed to reduce the value of Tesla ?
On Sat, 07 Jun 2025 11:13:02 -0700, Barry Gold wrote:
But just shutting down a corporation that is making a profit... The
shareholders would undoubtedly sue for an order requiring Musk to keep
it going.
But that implies that at some point when Musk says "Shut it down",
whatever part of the organisation that would do that has the agency to
reply "No, Mr. Musk. Instead we are going to file a court order telling
you that you can't do that because of the shareholders."
Or are company employees subject to a sort of Geneva convention whereby
they have to refuse to follow instructions that might hurt shareholders ?
And if so, how is Musk allowed to reduce the value of Tesla ?
On 6/8/2025 1:25 PM, Rick wrote:
The question is whether X is a private or public corporation. I'm
under the assumption it is considered privately owned by Musk's
holding company (also privately held), so I think legally Musk can
shut it down.
But there is no question he can and most likely will be sued by
employees with contracts, suppliers with contracts, minority
shareholders, etc.
X" was known as "X-Corp" and is now wholly owned by "xAI" xAI is a
private company. Musk has a good number of shares (12%??) but not a
majority
On 21:54 8 Jun 2025, Roy said:
On 6/8/2025 1:25 PM, Rick wrote:
The question is whether X is a private or public corporation. I'm
under the assumption it is considered privately owned by Musk's
holding company (also privately held), so I think legally Musk can
shut it down.
But there is no question he can and most likely will be sued by
employees with contracts, suppliers with contracts, minority
shareholders, etc.
X" was known as "X-Corp" and is now wholly owned by "xAI" xAI is a
private company. Musk has a good number of shares (12%??) but not a
majority
As CEO Musk could choose to severely reduce the services X provides.
Perhaps under the heading of a strategic realignment.
On 6/23/2025 10:10 AM, Pamela wrote:
On 21:54 8 Jun 2025, Roy said:
On 6/8/2025 1:25 PM, Rick wrote:
The question is whether X is a private or public corporation. I'm
under the assumption it is considered privately owned by Musk's
holding company (also privately held), so I think legally Musk can
shut it down.
But there is no question he can and most likely will be sued by
employees with contracts, suppliers with contracts, minority
shareholders, etc.
X" was known as "X-Corp" and is now wholly owned by "xAI" xAI is a
private company. Musk has a good number of shares (12%??) but not a
majority
As CEO Musk could choose to severely reduce the services X provides.
Perhaps under the heading of a strategic realignment.
He could also put it behind a paywall, denying access to anyone but paid subscribers. This would almost have the effect of shutting it down, especially if he made the subscription price high enough.
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