It is advised to “never incorporate a company in the state of Delaware,” the billionaire has advised his X followers.
Five years after a shareholder lawsuit that attacked Tesla’s board and CEO, the Delaware court made its ruling. The IT giant’s oversight is based in the state where the company was incorporated.
The defendants were charged with violating their obligations, which led to the misappropriation of company funds and Mr. Musk’s unjust enrichment.
Plaintiffs’ attorneys contended that the compensation package was imposed by Mr. Musk and the result of fraudulent discussions with non-independent directors.
Defense attorneys claimed that the remuneration plan had been reasonably negotiated by an independent directors’ committee, included high performance targets, and had been confirmed by an unnecessary shareholder vote.
A lawyer for Mr Musk and other other Tesla defendants did not immediately respond to an email seeking comment.
Mr Musk reacted to the ruling on X, the social media platform he owns, by telling his followers: “Never incorporate your company in the state of Delaware.”
