In the last couple of days Musk was sued for FRAUD by the Securities & Exchange Commission and now word is out that he struck a deal with the SEC and was forced to resign as chairman of TESLA motor cars.
Many consider him a snake oil salesman. Others consider him a prophet.
https://techcrunch.com/2018/09/29/e...ign-as-tesla-chairman-in-settlement-with-sec/
Many consider him a snake oil salesman. Others consider him a prophet.
https://techcrunch.com/2018/09/29/e...ign-as-tesla-chairman-in-settlement-with-sec/
Full article at the link above, but here are some of the basics:
Tesla CEO Elon Musk will step down as chairman of the electric automaker and pay a $20 million fine under a settlement reached with the U.S Securities and Exchange commission. Musk will remain CEO.
Musk will resign from his role as chairman of the Tesla board within 45 days of the agreement, which was filed Saturday. He has agreed to not seek reelection or accept an appointment as chairman for three years. An independent chairman will be appointed, under the settlement agreement.
Tesla will pay a separate $20 million penalty, according to the SEC. The SEC said the charge and fine against Tesla is for failing to require disclosure controls and procedures relating to Musk’s tweets.
Musk doesn’t have to admit or deny the SEC’s allegations as part of the agreement.
Tesla has also agreed to appoint two new independent directors to its board and establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications, according to the SEC. This likely means that Musk, who frequently turns to Twitter to unveils new products, features and updates on his multiple companies, will be more restricted moving forward. At least when it comes to his tweets about Tesla.
“The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders,” Steven Peikin, co-director of the SEC’s Enforcement Division said in a statement.
The agreement marks the beginning of a new era of corporate governance for Tesla, which some shareholders have argued is too tightly controlled by Musk and others closely aligned to him such as his brother Kimbal Musk. Investor and founding board member Steve Jurvetson is still on leave.
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