Staff Reports
Elon Musk, Twitter, and Twitter continue their battle in the continuing dispute between the three of them. The letter that was sent out on Friday indicates that 18 Republican members of Congress have asked for all data relevant to Musk's aggressive acquisition of Twitter to be maintained by the board of directors.
Even while the official request made by the minority Republicans is not legally enforceable, it might be used to begin an inquiry if the Republicans were to gain the majority in the House of Representatives in the next midterm elections.
Who among you would be willing to part up a significant amount of money to see the members of Twitter's board of directors testify under oath in front of the Republican-controlled House Judiciary Committee? Awesome. Make sure you consume a large amount of popcorn.
In letters that were first provided with CNBC, the Republicans demanded that the Chairman of the Twitter Board, Bret TAY, save all of the communications sent by board members from either their personal or their professional accounts. This contained encryption software relevant to Twitter's "consideration" of Musk's aggressive takeover proposal, which was a frantic struggle against it.
In one of the letters, the formal request was written to Bret Taylor, who is the chair of the Twitter Board of Directors. Jim Jordan, who has since passed away,
This letter is going to be addressed to Congress in order to make a request for the preservation of any documents and materials that are associated with Musk's attempt to purchase Twitter. In addition, it contains Twitter's reaction and review of Musk's offer, as well as Twitter's analysis of the interests of its shareholders in connection to Musk's proposal.
Jordan was speaking in particular about the "fiduciary obligations" of corporate boards, which are commitments that boards owe primarily to shareholders (even minority shareholders), and for which boards are likewise responsible only to shareholders.
The next part of the letter read:
This preservation notice should be interpreted as an instruction to take all reasonable measures to prevent the destruction, alteration, or negligence of any documents, communications, or other information, electronic information, or metadata that may be responsive to this congressional inquiry. These kinds of information include metadata, which is a type of information that describes the information that is contained in electronic files.
According to what we've heard, Twitter has not yet responded to Musk's offer, although the company did reveal its "poison pills" plan only the week before. If Musk, who now controls more than nine percent of the company's shares, crossed a threshold of 15 percent, it would go into effect. It would allow other Twitter stockholders to acquire more shares at a steep discount, giving them the opportunity to do so. When this occurred, the price at which stocks were traded was equivalent to two times their initial selling price. The deluge of shares that Musk would get as a result of the selling of his stock would, in theory, cause Musk's share to become less valuable. All of these will contribute to making the cost of ownership unaffordable.
In addition, the letter brought up the duties of fiduciary responsibility that had been discussed in the preceding paragraph.
The members of Twitter's Board of Directors are obligated to act in the shareholders' best interests. In spite of the fact that many company executives advocate progressive initiatives that have nothing to do with the interests of shareholders, these responsibilities nonetheless apply.
The whole picture becomes more complicated. Elon Musk is Elon.
Because he acts as like he is helpless, Elon Musk is not the most successful person on the globe. He also does not collaborate with a business coworker who has comparable expertise. On the other hand, Musk acts as if he is playing with the Twitter board at times, much as a hamster might act when playing on its wheel.
Regardless of whether or not the Twitter board complies with the request made by House Republicans to retain the communication, Elon Musk will make the decision about whether or not he will purchase Twitter.
The preceding is a summary of an article that originally appeared on Real News Real Patriots.
