The board proposed the modifications in April, following a string of changes implemented after Chief Executive Elon Musk was accused by regulators of misleading investors with statements about a plan to take the company private. As part of a settlement with the government last year, Tesla named a new chairman and two new directors. The board’s recommendations aimed to shorten directors’ terms and lower the hurdle to pass corporate measures.
The proposal to narrow board members’ tenure to two years from three failed to get enough votes, as did the bid to change the supermajority voting requirement to a simple majority, the company said at its annual shareholder meeting Tuesday in Mountain View, Calif.
While both measures received more than 99% approval from those who voted, the proposals didn’t get two-thirds approval from all shares outstanding, Jonathan Chang, Tesla’s top lawyer, said at the meeting.