(Bloomberg) -- Tesla Inc. took a step to prevent future shareholder lawsuits like the one that blocked a record-setting pay package for Chief Executive Officer Elon Musk.
The automaker late Friday disclosed changes to its corporate bylaws that will require investors to own at least 3% of the company's shares in order to "institute or maintain a derivative proceeding." The move was taken on May 15, according to a regulatory filing.
The change comes days after Texas Governor Greg Abbott signed legislation enacting a series of changes to the state's corporate law, including allowing companies to adopt ownership thresholds that must be met for shareholder derivative claims. Abbott and other Republican leaders in the state have touted the measure as a method for enticing more businesses to incorporate in the state.
Tesla did not immediately respond to a request for comment.
https://www.msn.com/en-us/money/companies/tesla-moves-to-stymie-shareholder-lawsuits-after-musk-pay-saga/ar-AA1EW16M
I'm sure that will help the value of Tesla stock. Idiots!