Attorneys for Elon Musk and Tesla argued on Friday that despite there being no directly comparable Delaware case law permitting it, Chancellor Kathaleen St. J. McCormick should allow Tesla shareholders’ vote to ratify the compensation plan she previously ruled should be rescinded.
McCormick, who did not rule from the bench, pressed both David Ross of Ross Aronstam & Moritz and Rudolf Koch of Richards, Layton & Finger first on the scope of what the defendants are asking for, then on what precedent, if any, would give her the authority to grant that request–ratification following an adjudicated breach of the duty of loyalty.
