Musk blunders: Tesla and its CEO Musk have agreed to pay a total of US40mil and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. — AP
SAN FRANCISCO: A run-in with the US Securities and Exchange Commission (SEC) may prove to be the recipe for reform that corporate governance experts have said Tesla Inc’s board needed years ago.
The electric-car maker has been forced to find an independent chairman to replace Elon Musk as part of a US$40mil accord with the SEC to settle fraud charges related to his tweets about taking Tesla private. The company also will have to add two new independent directors and implement controls to oversee the communications of its outspoken chief executive officer.
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