WILMINGTON, Delaware, May 30 (Reuters) - Tesla

shareholders will vote on June 13 to ratify Elon Musk's $56

billion pay package, which a Delaware judge voided in January

because she found he improperly controlled the process. They

will also be asked to approve moving the company's legal home to

Texas from Delaware.

Below is a look at the potential legal fight standing in the

way of Musk's pay day.

WHAT IMPACT WILL THE SHAREHOLDER VOTE HAVE?

If shareholders reject the move to Texas and Musk's pay, it

will vindicate the court's ruling that described Musk's pay as

"unfathomable," and would be a stinging defeat for a board that

critics say is dominated by Musk.

If shareholders vote to pay Musk, it will likely set off

another legal challenge. Where that challenge takes place might

depend on the vote to move Tesla's legal home to Texas.

IF TESLA BECOMES A TEXAS CORPORATION

Lawyers for Richard Tornetta, the shareholder who sued in

Delaware in 2018 over Musk's pay, have said in court filings

they fear the shareholder vote is a bid to use a Texas court to

undo the January ruling.

For her part, the judge in Delaware, Chancellor Kathaleen

McCormick, said on May 28 she was assured by Tesla's attorneys

the company will not litigate any dispute over the shareholder

vote outside Delaware.

IF TESLA REMAINS A DELAWARE CORPORATION

The judge in Delaware still has to decide how much to award

to Tornetta's legal team as a fee payable by Tesla before Musk

and Tesla can appeal. The shareholder legal team requested $6

billion. A hearing is scheduled for July 8.

Tesla's legal team has said a vote ratifying Musk's pay

would materially affect the Delaware proceedings, although they

did not explain how. If the pay package is ratified at the

shareholder meeting, it will almost certainly be challenged by

shareholders opposed to it.

McCormick could include such a challenge in the ongoing Musk

pay case or create a new lawsuit. If it were a new case, that

would allow Tesla and Musk to appeal the January ruling to the

Delaware Supreme Court while the Court of Chancery sorted out

challenges to the shareholder vote, which could take months or

even years.

TESLA'S NOVEL USE OF A RATIFICATION VOTE

Tesla's ratification vote is based on Delaware law that is

meant to allow companies to clean up technical defects in

corporate transactions, like sales of stock that were not

properly authorized. The company described its approach as

"novel" in its proxy filing.

No one has filed a legal challenge, but Charles Elson, a

former University of Delaware professor who specialized in

corporate governance, said in a court filing that ratification

cannot be used as Tesla is applying it - to correct a breach of

fiduciary duty by a board.

CHALLENGE TO THE VOTE

Tesla shareholders could also challenge the vote, citing

Musk's efforts to sway voting. Musk on May 18 responded "yes" to

a post on X that said if Musk gets the 25% equity stake he has

demanded along with incorporating the company in Texas and his

2018 pay package reinstated, then AI and robotics stay with

Tesla.

The company filed Musk's response with the Securities and

Exchange Commission as proxy material.

Musk's veiled threat to take AI from Tesla if he does not

get his pay may be a potential violation of corporate law, which

prohibits directors and officers from taking business

opportunities for themselves that belong to the company.