Elon Musk leaves after meeting with Indian Prime Minister Narendra Modi in Blair House, Washington, DC, USA, February 13, 2025.
Nathan Howard | Reuters
The lawyer’s company representing Tesla and Elon Musk wrote a proposed legislation that would change the corporate right of Delaware, states a person who is directly familiar with the drafting of the law.
The proposed legislation, made by Richards, Layton & Finger or Rlf, would change Delaware General Corporation Awan, and if they are adopted, could open the way to return Musk package CEO for 2018 in Tesla, is also valid tens of billions option.
RLF confirmed their involvement in CNBC.
“Legal changes need to return the basic principles that have been a sign of Delaware for more than a century and ensured that Delaware remains a prominent jurisdiction to establish,” Lisa Schmidt, president of RLF, said in a statement.
The proposal of the Law was introduced into the Delaware General Assembly on Monday and would require approval by two chambers of the state, as well as the government Matt Meyer, before becoming the law.
The salary of Tesla salary approved Men in 2018 was the largest plan for the executive director in public corporate history, but ordered it to be abolished last year by Delaware Court of Chancery.
In her verdict, Chancellor Kathaleen McCormick wrote that the salary plan was inappropriately appointed by the Tesla Committee, who controlled Musk, and was approved by the shareholders who were Tesla Proxy materials deceived before they were asked to vote on it.
According to the proposed legislation, Musk can no longer be considered as a “Tesla controller”, said Brian JM Quinn, a professor of rights to Boston College. Transactions involving self-jerk with controllers or directors would be subject to less views than they are now, Quinn said. These transactions range from private contracts, to the merger and acquisition, and the decision on the compensation of the Committee and the Executive Administration.
“The real role of corporate law is the protection of minority investors,” Quinn said. “With this proposal of the law, the legislative body says,” Now you know what to do? “Protect them less.”
The proposed legislation would also limit the documents that minority stakeholders can obtain through the “Book and Record” inspection request, Said Quinn. These stakeholders would be restricted to formal items such as a certificate of establishment or a list of shareholders meeting, but they would lose access to informal communications such as E -State or other messages between the board members and the manager, Quinn said.
Following the verdict of the office of the office last year, Musk started a campaign against companies involved in Delaware and moved the founding place for its business outside the state. He aimed anger at McCormick’s Chancellor with repeated and belittling posts about her on X, his social network.
Other distinguished executives, including Coinbase Executive, Brian Armstrong and Bill Ackman from Parshing Square, also expressed criticism of the judiciary in Delaware.
“Delaware has taken some heat because he is allegedly too busy in the controller transactions,” said Renee Zaytsev, a partner at Boies Schiller and Kopressing Companies for Securities and Disputes Companies in shareholders.
“It seems that these amendments are a correction of the course that would make it much easier for the committees and controllers to avoid court supervision of their transactions,” she said.
Tesla and Musk did not respond to the commenting requests.
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