TapTechNews August 4th news, the huge $56 billion (TapTechNews note: currently about 402.405 billion yuan) compensation case of Tesla CEO Elon Musk has once again attracted attention. On August 2 local time, Musk's legal team filed an application with Judge Katalin McCormick in Delaware, asking to revoke the previous ruling that determined the compensation plan was invalid.
In January this year, Judge McCormick once ruled that Musk's $56 billion compensation plan was invalid, citing that it was astonishingly large. Subsequently, Tesla shareholders approved this compensation plan for the second time at the general meeting of shareholders in June, but this does not mean that Musk can immediately obtain this huge sum of income.
Now, Musk's lawyers are trying to use the fact of the second shareholder approval to get Judge McCormick to rehear and approve the compensation plan. Another judge, David Roth, said at today's hearing that the shareholder's vote should be respected, which is the triumph of shareholder democracy.
However, Judge McCormick seems reluctant to reverse the ruling. She is worried that this may set a precedent that the ruling can be challenged and overturned. Delaware law has no precedent before that the vote made by shareholders after the court determined a violation of fiduciary duty can overturn the ruling.
Musk's lawyers are confused about the situation that Delaware law seems to override the will of shareholders. They said: Frankly, I don't understand how Delaware law can tell the owners of the company that they have no right to make their own decisions.
Another lawyer representing individual shareholders, Donald Verilli, also said: The voice of the majority of shareholders should be taken seriously... This lawsuit does not represent the interests of the shareholders.
At present, it is still uncertain whether Judge McCormick will finally approve Musk's compensation plan.