Last week, Business Insider reported “Tesla rejected 11 investor proposals calling for accountability and sustainability” at its upcoming November 6 shareholder meeting. Tesla won approval from the SEC to exclude these from the company’s meeting agenda.
Among the rejected proposals:
- “Pledge to use AI in a way that supports renewable energy,
- Not to engage in deep-sea mineral mining,
- Align business strategy with the Paris Climate Agreement,
- Look into sustainable tires,
- Ensure workplace rights in Tesla’s factories, such as the freedom to unionize
- Ask for an annual report to assess the effectiveness of the company’s antidiscrimination efforts,
- Increasing oversight on Tesla’s HR practice,
- Issue a report on how the company plans to reduce its emissions,
- Disclose all monetary and non-monetary contributions used to influence elections,
- Disclose how diversity and sustainability goals relate to bonuses or increased compensation among executives.”
Earlier this summer, we blogged on recent changes to SEC Staff Legal Bulletin (SLB) 14M giving companies a wider berth in setting aside shareholder proposals. Tesla successfully won SEC’s approval for “no action” requests on these proposals.
Members can learn more about shareholder activism here. There is also a treasure trove of general information and guidance on shareholder proposals, no action requests and SLB 14M over at TheCorporateCounsel.net.
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