Tesla Sets High Ownership Threshold for Shareholder Lawsuits, Limiting Legal Challenges

Tesla Sets High Ownership Threshold for Shareholder Lawsuits, Limiting Legal Challenges

Tesla has revised its corporate bylaws to restrict the ability of shareholders to sue company executives or board members for alleged breaches of fiduciary duties, according to a regulatory filing. Effective May 15, the electric vehicle maker requires investors to own at least 3% of Tesla’s outstanding shares—valued at over $30 billion based on current [...] The post Tesla Sets High Ownership Threshold for Shareholder Lawsuits, Limiting Legal Ch…

Tesla Limits Shareholder Lawsuits

The Tesla board continues to pretend that a public company is a dictatorship. Effective May 15, Tesla’s revised corporate bylaws now require that any shareholder—or group of shareholders—must own at least 3% of the company’s total outstanding stock to file a derivative lawsuit. In simpler terms, unless an investor holds billions of dollars’ worth of Tesla shares, they no longer have standing to bring claims on behalf of the company against its …

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Tesla Now Requires 3% Ownership to File Shareholder Lawsuits

Tesla has implemented an important change to its corporate bylaws, limiting the ability of shareholders to sue the company’s executives or board members for alleged breaches of fiduciary duties. According to a regulatory filing, Tesla […]