Tesla amended its corporate bylaws to require investors to hold 3% of the company’s stock before they can file a derivative lawsuit. Authorities in New York State are now urging the company to eliminate the bylaw entirely, according to CNBC. One day after Texas enacted a law allowing companies to require 3% ownership to file shareholder derivative suits, Tesla’s board amended its bylaws to adopt the maximum threshold. The change was criticized in a letter signed by New York officials, who viewed it as a move to shield Tesla’s leadership from shareholder accountability. Only three institutions currently meet that ownership level. Tesla has not commented.
