Elon Musk has been in hot water lately with the U.S. Securities Exchange Commission (SEC) regarding his Twitter use, but Tesla’s new chairman of the board backs up his utilization of the social network.
The new chairman Robyn Denholm defended Musk during a question and answer period after a speaking engagement at the American Chamber of Commerce in Sydney, Australia, reports Bloomberg.
“Twitter is part of everyday business for many executives today. From my perspective, he uses it wisely,” she said, according to the report.
“We believe we’ve done everything that we need to do under the settlement, but obviously it’s going to the court, and it will go from there,” she said as a follow-up, as per the report.
While this may be Tesla’s stance, the SEC recently asked a Federal Judge to hold Musk in contempt for not following the social media-related terms of its prior settlement.
Denholm was a director at Tesla before the company promoted her to chairman after Tesla and Musk’s issues with the SEC started. Musk wanted to take the automaker private, and he outlined his plans to do so in a Tweet that the SEC alleged was misleading to investors.
As a result, Musk had to relinquish his position as chairman of the board, among other penalties, ending with Denholm’s promotion.
U.S. District Judge Alison Nathan will hear Musk’s case as to why she shouldn’t hold him in contempt on April 4th, reports The Mercury News.
Source: Bloomberg, The Mercury News
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