“The fund is asking a Delaware judge to find that Musk meets the test for an “interested shareholder” and is subject to the law, according to the complaint.
The statute cited by the Florida fund was passed by Delaware lawmakers in the 1980s to help address a boom in takeovers and to protect shareholders’ rights to vote, but it won’t pose much of a barrier for Musk, said Charles Elson, the former director of the Weinberg Center for Corporate Governance at the University of Delaware.
“Its an extremely high wall to show someone was an interested shareholder, and few have surmounted it over the years,” Elson said.”