SpaceX is planning an IPO that would grant CEO Elon Musk virtually unchecked authority and strip shareholders of their right to sue. According to Reuters, the registration statement combines supervoting shares, mandatory arbitration, and Texas corporate law to concentrate power with Musk and other insiders.
The filing reportedly includes a mandatory arbitration clause, taking advantage of a recent SEC policy statement. Shareholders would "irrevocably and unconditionally" waive all rights to a jury trial and are prohibited from bringing class actions against the company, its directors, or IPO bankers.
Musk currently holds 42.5 percent of SpaceX's equity and 83.8 percent voting control. After the IPO, he will retain over 50 percent voting power, giving him the sole authority to fire himself and control board appointments and major transactions.