If Elon Musk wishes to re-step as the Tesla chairman, then the shareholders must accept the agreement.
Story Highlights – Musk As Tesla Chairman
- An agreement of $20 million payment by both Musk and Tesla.
- As per the settlement, Musk is only the CEO and has to step down as the Tesla Chairman.
- The above requirement is explored in court both by Tesla & SEC.
After the decision by the SEC, Elon Musk has to step down as the Tesla chairman. But if he wishes to dethrone the place, the shareholders of the company need to vote for it jointly.
Being part of a series of controversy, After a forged tweet that he will take the company private. Elon Musk had to relinquish his role as the Tesla Chairman for a minimum of three years. Now if he wants to be the chairman again, then a team of shareholders must approve the same.
US District Judge Alison Nathan ordered the brief showing that the settlement was “fair and reasonable,” though this is a common practice in the court. She is yet to rule the agreements between Musk and Tesla.
A tweet that retweeted musk’s life. SEC alleged him for committing fraud owing to his tweet on 7th August stating that he was planning to turn Tesla private. See full story here.
SEC convinced that no such deal is done and hence determined to punish him by thrashing him out of the company. Though Elon initially denied the allegations but two days later. He came forward to pay the penalty amount and also step down as the Chairman of Tesla.
Though this deal wasn’t fair, Elon is free to speak up against another subject, especially mocking SEC.
The court brief does not have any mention about Musk insulting the commission as a tweet on October 4. And so he does not owe any punishment.
Musk & SEC Mishap
Musk also taunted the SEC few days after the settlement has been announced stating them as “Shortseller Enrichment Commission.” Just before he praises the same for “doing incredible work.”
The tweet stokes the long funding feud of Musk with the short sellers. These are an investor category that bet on a stock of Tesla to fall.
Chester Spatt, the professor of finance at the Carnegie Mellon University and a former economist of SEC gave a thrashing statement. He said that the vote requirements of shareholder depict that the SEC is protecting investors.
“It’s a good reminder to the board that ultimately it is the stockholders that matter,” he said.
So, yes Elon Musk is currently the chairman of Tesla, but it seems of SHAREHOLDERS stand for him, he will regain his position.
Let’s see who wins in this SEC – Musk – Tesla battle.