Two additional SolarCity board members with ties to Elon Musk are recusing themselves from making decisions regarding Tesla’s offer to buy the solar power company, in a bid to alleviate corporate governance concerns surrounding a potential deal.
The new recusals mean the majority of SolarCity’s board will be sitting out the decision on whether to be acquired by Tesla.
Peter Rive, who is the cousin of Tesla chief executive and SolarCity chairman Musk, along with JB Straubel, chief technology officer and co-founder of Tesla, are both recusing themselves from the decision-making process, SolarCity spokesman Jonathan Bass said in a statement emailed to Reuters late on Friday.
Musk, the largest shareholder in both companies, recused himself earlier from voting on the potential deal, along with Antonio Gracias who sits on both companies’ boards, and SolarCity Chief Executive Lyndon Rive, who is Musk’s cousin as well as Peter Rive’s brother.
There are three remaining SolarCity board members: John Fisher and Nancy Pfund, both venture capitalists and Donald Kendall Jr., CEO of Kenmont, an investment management firm.
“We’re very mindful of the need to have a process that ensures independent, objective decisions that are in the best interest of all shareholders,” SolarCity’s Bass said in the statement.
Tesla did not immediately respond to a request for comment.
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