Tag archives: Control

Minority shareholder who dominated board held to control a company

By Patrick Bracher (ZA) on May 1, 2018 Posted in Insurance

A court, asked to dismiss a claim against Tesla Motors, found it reasonably conceivable that Elon Musk, a 22.1% shareholder, was a controlling shareholder because of his ‘actual domination and control over the directors’ wielding more power than may be evidenced by the minority shareholding. Normally the courts of Delaware, where the case happened, would … Continue reading

Seventeen point three percent shareholder/CEO held to control a company in US

By Patrick Bracher (ZA) on February 9, 2015 Posted in General

A Delaware court held that there was a reasonable inference that the CEO who held only 17.3% of the company’s issued shares possessed “both latent and active control” over the company because the company had made statements to this effect. The company had filed a form in connection with a proposed merger which referred to … Continue reading