However, the billionaire tech entrepreneur will continue to stay on as CEO at the company,CNBC reported.
Additionally, Musk failed to properly inform regulators of material company events.
Besides Musk, Tesla will also pay $20 million as fine to the SEC.
However, the proposed settlement agreement, which includes other stipulations, is subject to court approval.
The company will also put in place additional controls and procedures to supervise Musks communications, the SEC said.
The resolution is intended to prevent further market disruption and harm to Teslas shareholders.
Under the deals terms, Musk and Tesla neither acknowledged or denied wrongdoing alleged by regulators.
Source:CNBC
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source: www.techworm.net
