You are here. CEO Elon Musk He resigned as the president of the automaker and fined 20 million dollars as part of an agreement with the US Securities and Exchange Commission (SEC). Mr. Musk serves as Chief Executive Officer and chairs the Board, but the Chairman will not take office.
This transaction solves what might potentially hurt for Musk, the company, and Tesla shareholders.
Musk declines the role of the Tesla Committee chairman within 45 days of the deal submitted on Saturday. He did not ask for re-election or agreed to accept the appointment as chairman for three years. An independent chairman is appointed under a settlement agreement.
According to the SEC, Tesla will pay a penalty of 20 million dollars. The SEC said fines and penalties against Tesla were due to not requesting control and procedures on Musk's tweets.
Musk does not have to deny or deny the SEC's assertion under the agreement.
Tesla also agreed to appoint two new independent directors at the board of directors, create a new committee of independent directors and introduce additional controls and procedures to supervise musk communications, SEC Said. This probably means that Musk, which frequently looks to Twitter to publish new products, features and updates in multiple companies, will be further restricted in the future. For at least Tesla's tweets,
Steven Peikin, co-director of SEC's security department, said: "This resolution is intended to prevent further turmoil in the market and damage Tesla shareholders."
This agreement is the beginning of the new era of Tesla's corporate governance and believes that some shareholders are too strictly controlled by musk and others like his brother Kimbal Musk. Steve Jurvetson, one of investors and founding director, is still on vacation.
In 2017, Tesla diversified the board of directors,
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Elon Musk agrees to resign as Tesla in the settlement with the SEC -
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