Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Musk owns 22% of the equity and voting rights in the company, which may not seem like a lot considering that Facebook CEO Mark Zuckerberg controls 60% of the votes at the social media giant and much less of the equity. However, according to a lawsuit in Delaware Chancery Court, Tesla's bylaws contain supermajority voting requirements that require the approval of two-thirds of shares to OK major changes at the electric-car maker, including mergers, acquisitions or changes to the board's compensation.
Activist gadfly James McRitchie has submitted shareholder proposals in 2014 and 2016 to do away with Tesla's supermajority voting rules. In an interview, he notes that currently insiders -mostly Musk -- control about 25.5% of Tesla's shares and as a result, without Musk's support, a minimum of 89.5% of outside shares must vote to approve key changes -- an incredibly high hurdle.
Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.
Wed, 08 Aug 2018 09:03:00 -0400
Copyright (c) 2018 StreetInsider.com
