Assessment Task 3 - Research Portfolio (1200 words) Assessment Task 3 Task Purpose The purpose of Assessment Task 3 is to have students undertake an analysis of the governance structures and the...

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Corporate Governance and Case Study of Tesla Motors
Introduction
    The corporate governance is a sensitive issue where several roles and responsibilities pertaining to the organizational wellbeing have to be carried out with sensibility of behavior. It implies that no random response or reactions should appear on behalf of the administrative people; a great deal of mutual interests is always involved in the organizations following corporate governance and, therefore; random or casual reactions simply lead to the confusion and worries in the other stakeholders. The case study of Elon Musk, the CEO of Tesla Inc. is one of such issues in which, the flaws of the corporate governance appeared on the surface. It is rightly to be called that one person is now carrying out all duties and accountabilities in Tesla and that is Elon Musk, according to the observation of a journalist. His perception includes the theory that Musk is running the company single handed which is not good for the wellbeing of Tesla in future. The following is an analysis of the tweet by Musk which went viral and controversial. It poses the questions about the rationale of using personal authority over the entire organization especially when, the company is renowned for automobile innovation.
The Background of Corporate Governance of the Tesla    
    The controlling body of the Tesla is the Board of Directors which administrates and monitors all activities of the company. The value of good corporate governance is implied in this theory. The Board of Directors is responsible for acting as a wise trustee for shareholders and supervising the management of the company’s operations (Tesla Motors, 2015). Thus, it is implied that the direct command of the company is in the hands of the Board of Directors who are responsible for the management of the company. These guidelines are subjected to change from time to time, based on the best interests in favor of the company or as Board of Dirctors think suitable as per the ;legislations and laws (Tesla Motors, 2015).
    Under the guidelines for corporate board to govern, it is mentioned that they will be having the independent degree of working i.e. as required by the NASDAQ Stock Exchange; the majority of directors on the board will be independent. The Board also agrees that having non-independent directors, including current and former management members serve as directors, is perceived to be in the best interest of the company (Tesla Motors, 2015). Any independent director who is experiencing a change in circumstances that could impair the independence of that director...