Tesla shareholders furious with Elon Musk have 2 main options to advocate for change 

Since Elon Musk has become a senior adviser to President Donald Trump, the government’s policy and the government’s work guided by the government has initiated a tough feedback on its companies.Especially TeslaA number

Peaceful complaints have been staged During the transactions of electric vehicles, but Teslas also has is torchedand charging is vandalized. Enterprise Contricolative Now the sellers make a manufacturer of hundreds of thousands of months Stickers of anti-Mush Tesla for drivers who bought the car before it became a political symbol. Although a small increase in the price of the company’s shares in the last week, the lifting of the coffin coincided Decline In Tesla’s shares.

This unusual situation, EN Lipton, Lipton, with Dean’s School of Law School, says that Musk critics have asked the Director General about the legal ways to focus his energy in Washington. In short. Can shareholders sue?

It’s an understandable question. However, according to Lipton, the idea of ​​judging musk for Teska’s losses is also wrong. He says that bringing the demand for shareholders against Musk will almost certainly fail.

Instead he tells Luck, Shareholders have only two realistic options. Try to push out or vote into new members of the Board or sell their stocks.

“The system is scheduled for the idea that lawsuits are the latest way to discipline the restoration corporate governors, not in the first resort. Professors of Business LawA number

Why not sue?

Musk and Tesla board have been sued before by shareholders. Recently, some so-called joint-stocked transcendants (in which investors judge the company’s directors or officers) rolled into one major court case In the Chancellor Court of Delaware, where the Teslan was previously included. (Now that is included In Texas.)

But Lippon claims that a case that Musk damages Tesla, working with dogs, as plaintiffs must be given the plaintiffs to harm.

Any legal challenge should show that musk as a corporate governor, he was unable to show “care responsibility” for shareholders. “It would mean that Musk has done foolishness and” consciously neglected by one’s responsibilities, “he writes. But there was no sign that happened. As for his loyalty, he writes:

In addition to sue the musk, giving a law will not work, says the professor. Corporate rights are not intended to sue the shareholders when they disagree with the advice of decisions on how to deal with business. Shareholders can only succeed when they believe that the council has not been able to provide proper control.

Tesla’s advice that includes Musk Brother Kimbalcollided with criticism very comfortable It is not the same as the Director General, but the lack of honesty is to choose its management, says Lipton. In fact, the council has been published in SEC Filings, including the latest Annual Reportthat the company is “highly dependent on” musk, but he “doesn’t give all his time and attention to Tesla.”

“It’s the price you pay for Elon Musk as your CEO,” he said FortuneA number

In case of legal challenge, you could not show that Tesla’s directors not pay attention, he continues. “They can legitimately think that there is no discipline that they can bypass musk, or even legitimate that it can work for the benefits of Tesla,” he added. “These are the judgments that the council has the right to do.”

Point

Although the trials against Elon Musk or the Thesele or the Teslay Council are not other ways that shareholders can voice their dissatisfaction.

Shares owners will always have a vote option for the company’s annual meeting or together Proxy Fight: The Lippon states that the choice of directors.

There is also a much more simple option, division of the company’s division as a complaint. (A Denmark’s pension fundFor example, recently did that step.)

Opposite institutional investors who feel some pressure Drow Tesla Stock, Retail Investors showed loyalty and in the last few weeks Support for musk. But it can change, says Toronto Rotteman’s Professor Tim Roul, who believes that Tesla is uniquely vulnerable by a retail investor, taking into account the higher percentage of individual buyers.

He notes that many Tesla’s owners are also shareholders. And Rowlin merged into the past Meme-stock uprisings which is controlled Scent and AMC’s trade as an example of what could happen, Musk fans need to join him, and if their dissatisfaction with the point of strike.

“When they act,” he said about separate shareholders. “They can do some extreme materials.”

This story was originally shown Fortune.com