How Would Elon Musk Control Twitter?

Other securities law experts said that kicking off his stake disclosure with a “passive” filing gives Musk more flexibility, and keeps everyone guessing as to what his real intentions are.

Elon can change his mind about being passive and file a 13D. A 13D form indicates an “activist” stake.

“It seems that Musk is advocating for change, not control,” said Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware. “But it’s going to be a mess for Twitter, because Elon Musk is not your ordinary shareholder.”

Twitter’s next annual meeting is May 25, 2022.

Elon can probably get Jack Dorsey and Cathie Wood of Ark Invest to side with his plans. This would be 15% of the shares. About 30-40% of the shares are major investment funds.

If Elon Musk has plans that are also viewed as effective for growing the value of the stock then Elon will have the share votes to get board seats or for him or his selected representative to become Chairman of the Board. Board control would let Elon determine who the CEO is for Twitter.