Tesla change to limit shareholder suits slammed by New York officials
Elon Musk interviews CNBC from Tesla center in Texas.
CNBC
In May, Tesla He changed his corporate statutes in a way that requires investors to have 3% of the stocks in order to file a derivative lawsuit to violate trust -based tasks on the company. The officials in New York now want Tesla to delete the regulation completely.
The supervisors of the New York Province Joint Pension Fund, which has a 0.1% of Tesla’s shares, presented an official deputy proposal and letter to the company on July 11 and shared with CNBC on Wednesday. Elon Musk’s automobile manufacturer said that the shareholders are dealing with a “feed and key” to persuade the merger movement from Delaware to Texas in June 2024.
A judge in Delaware, CEO, the richest person in the world, took action after invalidating the $ 56 billion wage package, which was given by Tesla, the biggest compensation plan in the public history of the public company in 2018. Tesla, the shareholders ‘changes in the establishment of the change, while the stakeholders’ rights in accordance with the laws of Delaware and Texas “largely equivalent”, he said.
On May 14, almost a year after Tesla’s movement, Texas changed his law to allow companies in the state to require 3% ownership before filed a shareholder derivative case.
“The next day Tesla’s board, the company’s statutes allowed by the maximum 3% ownership threshold allowed by changing the company’s managers and civil servants to the shareholders effectively insulated to shareholders.” The letter was signed by the Pension Fund on behalf of Thomas Dinapoli, the Fund and New York State Supervisor, by Gianna McCarthy, Director of Corporate Management.
Only three institutions currently have at least 3% of Tesla’s distinguished shares.
Tesla did not respond immediately to the request for comment.
When the New York Fund surveys, company administrators or officers violated their confidence -based obligations and called Tesla’s decision on the issue, the derivative actions were the last resort to implement the rights of the shareholders.
CNBC’ye E -Postada Dinapoli, Tesla “cheating on shareholders”, said they were sure that their rights will remain the same in Texas.
“These actions violate the basic principles of good corporate governance and need to be reversed.”
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