Dan GillmorDec 19, 2022

If Musk "steps down" as Twitter CEO, per his latest bogus "poll", some things to remember:

1) He'll still be in control. The owner sets the policy the CEO carries out. The owner decides in the end.

2) He lies incessantly. Nothing he says can be trusted, ever.

3) Big Journalism will breathlessly cover the charade as if it meant something, and will continue to support a man who loathes honest reporting and has contempt for genuine freedom of expression.

Show threadKarl AuerbachDec 19, 2022
@dangillmor - Well, there is, in theory, some friction between majority shareholder and CEO. There's the board of directors (largely named by major shareholder). But we know how the Chicago economics nutz trained boards to kow-tow to large shareholders in the name of very short term "shareholder value".
Show threadBarry Schwartz 🫖Dec 19, 2022
@karlauerbach @dangillmor It's a privately owned company. Musk can operate it as he likes.
Show threadKarl AuerbachDec 19, 2022

@chemoelectric @dangillmor - If and when he brings in other shareholders than it won't be private any longer.

But moreover, as long as it is a "corporation" the legal separation between shareholders, directors, and officers remains. The IRS and state would be extremely interested if it were operated as a sole proprietorship. That's often called "piercing the corporate veil".

Show threadBriank65
@karlauerbach @chemoelectric @dangillmor not necessarily. A private company can have more than one shareholder.
Dec 19, 2022 at 3:05pmWeb
Show threadBarry Schwartz 🫖Dec 19, 2022
@briank65 @karlauerbach @dangillmor Sure, I used to work for a privately held company and they tried to pay us in shares when short of cash. Who wants shares in a company that can’t even make payroll? :)
Show threadBarry Schwartz 🫖Dec 19, 2022
@briank65 @karlauerbach @dangillmor There was also a snitch who listened through the door to board meetings. When I was let go, I became privy to knowledge of when they were planning to liquidate the place shortly after.
Show threadBarry Schwartz 🫖Dec 19, 2022
@briank65 @karlauerbach @dangillmor (I was let go earlier because I was thoroughly disabled and just wouldn’t admit it to myself. They did me a favor.)
Show threadKarl AuerbachDec 19, 2022
@chemoelectric @briank65 @dangillmor - If I remember correctly California has some rather strong laws about companies, especially non-publicly traded ones, who try to pay salaries with stock (options or certificates.)
Show threadBarry Schwartz 🫖Dec 19, 2022
@karlauerbach @briank65 @dangillmor I am in Minnesota, and it was over 20 yrs ago. California law means nothing here. :)
Show threadKarl AuerbachDec 19, 2022
@briank65 @chemoelectric @dangillmor - Yes, you are right. The term usually applied to a corporation that is not publicly traded with only a few shareholders is "closely held".