Tesla to downsize board from eleven directors to seven

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Tesla to downsize board from eleven directors to seven

Later on, Friday, the 19th of April 2019, the US-based e-vehicle mogul, Tesla Inc. had made a statement saying that four of their eleven board directors would be departing over the next two years, as the electric vehicle company based in Palo Alto, California, had been seeking to revamp its board.

At a regulatory filing, revealed on last Friday (April 19th), the company said that Antonio Gracias, Brad Buss, Linda Johnson and Stephen Jurvetson would not be standing for re-election over the annual meetings of shareholders in 2019 and 2020.

Besides, Tesla Inc. had also added that the decision was not resulted from any disagreement between the company and its board members. However, questions were raised, as out of the four members, who would be departing from the board, Buss and Gracias had been part of Tesla’s policy disclosure control committee, responsible for implementing the terms between the e-vehicle maker and US Exchange and Securities Commission.

Besides, the decision came forth, a day after a Manhattan Federal Court had allowed an extension of talk between the SEC and Tesla Inc. Chief Elon Musk to settle their disputes over a Twitter comment, on which SEC claimed that Musk had disclosed critical company policies without discussing it with his lawyer and he should be held in contempt.

Last year, Musk was first sued by the SEC for tweeting that he had “secured the fund” required to take the company into private.