Tesla Enforces New Rule Blocking Small Shareholders from Suing Officers

Reported about 15 hours ago

Tesla has implemented a new rule that prevents shareholders owning less than 3% of its shares, roughly equating to 97 million shares or about $34 billion, from suing its officers or directors. This decision comes after a recent law in Texas allowing companies to establish such thresholds to limit shareholder litigation aimed at protecting against abusive lawsuits. Previously, a lawsuit had been initiated by a shareholder holding just nine shares, highlighting a shift in the company's governance structure.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis