Tesla tries legal ‘Band-Aid’ to revive Musk’s huge pay deal | Reuters

Tesla and Elon Musk are seizing upon an obscure provision in corporate law to attempt to restore Musk’s $56 billion pay package, in an untested move that could again mire the company in litigation, legal experts said.

The electric vehicle maker on Wednesday proposed putting Musk’s 2018 pay deal to a shareholder vote, even though a Delaware judge voided it in January.

Tesla is using a little-known section of Delaware’s corporate law that lets companies fix procedural defects that would otherwise nullify their boardroom decisions.

Tesla called the approach “novel” in its securities filing and said the special board committee that approved it could not predict how it would be treated under Delaware law.

Eric Talley, a professor at Columbia Law School, said the provision is meant to be a “Band-Aid” for technical boardroom mistakes, not to undo major court rulings.

Source: Tesla tries legal ‘Band-Aid’ to revive Musk’s huge pay deal | Reuters