Tesla's CEO Ilon Mask will step down as the head of the board of the manufacturer of electricvehicles and pay a $ 20 million fine at the request of the US Securities and Exchange Commission(SEC). Mask will remain the general director and will be on the council, but not as chairman.
This agreement will not cause a bloody and harmful massacre between the Mask, the companyand the shareholders of Tesla.
Mask resigns
Mask will step down as Chairman of the Board of Tesla within 45 days after signing theagreement, which was presented on Saturday. He agreed not to seek re-election and not acceptappointment as chairman for three years. An independent chairman will be appointed in hisplace.
Also Tesla will pay a fine of 20 million dollars. The fine and the prosecution against Tesla areadvanced due to the inability to request the disclosure of information and procedures related tothe tweets Mask. However, the Mask will not have to recognize or deny the SEC's allegationsunder the agreement.
Tesla also agreed to appoint two independent directors to the board and create a new committeeof independent directors, and introduce additional control measures and procedures to monitorthe communications of the Mask. Probably, Mask will have to behave more restrained on Twitter - and he's used to announcing new products, functions and updates there. At least with Tesla thiswill not happen again.
All this will help prevent further market disruption and harm to Tesla shareholders. Now Tesla iswaiting for corporate control, and shareholders who demanded to humble the Mask and dislodgethe errant manager from the post of the head of the board of directors will be satisfied.