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 threadBriank65Dec 19, 2022
@karlauerbach @chemoelectric @dangillmor not necessarily. A private company can have more than one shareholder.
Show threadKarl Auerbach
@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".
Dec 19, 2022 at 8:14pmWeb