Tesla faces potential governance violations in Texas for not scheduling its annual shareholder meeting, required under state law within 13 months of the last one. With a deadline of July 13 approaching, 27 institutional shareholders managing $1.5 trillion have urged the company to announce a meeting date and provide necessary information for shareholder engagement. Concerns have been raised about Tesla's transparency and respect for shareholder rights. Key signatories include significant pension funds and state treasurers, and Tesla has not yet responded to requests for comment.
In a letter obtained by Business Insider sent four days ahead of the deadline, a group of investors managing $1.5 trillion in collective assets is demanding that Tesla publicly announce an "Annual General Meeting" date, disclose access details, and give shareholders "sufficient time and information to engage meaningfully in the governance process." This lack of transparency raises serious concerns about the company's respect for shareholder rights.
The letter is signed by 27 shareholders, including multiple large pension funds and state treasurers, such as New York City Comptroller Brad S. Lander, Oregon State Treasurer Elizabeth Steiner, and State of Maryland Comptroller Brooke E. Lierman.
Tesla risks violating a corporate governance rule in Texas, and shareholders are sounding the alarm. The EV maker, which was incorporated in the state of Texas in 2024 after leaving Delaware, has yet to schedule its annual shareholder meeting, which by state law must occur within 13 months of the last one.
For Tesla, that deadline is Sunday, July 13. Kevin Thomas, CEO of Shareholder Association for Research and Education, the main signatory of the letter, told Business Insider that he has yet to hear back from Tesla.
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