He absolutely can, but would expect to be sued in court. In Texas, where we don’t know what shareholder protections exist because the case law is so immature compared to Delaware.
But Texas is making a push very specifically around giving less shareholder protections.
Well, okay, he can do lots of illegal stuff that's going to get punished in the courts. There's no way something like that would survive SEC scrutiny, I don't care what state you're in.
A) it’s not the SEC’s jurisdiction. It’s the state of incorporation that covers shareholder rights.
B) we literally don’t know if it’s illegal or not yet. The reason investors like Delaware is that there is tons of decided case law and courts that are expert and fast at deciding these issues so you’d get quick predictable answers.
But those answers have lots of rights to minority shareholders which the modern dictator founders hated. So Texas made a play for them with the specific pitch that they will give much less support of minority shareholders.