After a lot backwards and forwards, Elon Musk has determined he won't be part of Twitter's board, as introduced by the corporate's chief government Parag Agrawal.

"I consider that is for the most effective," wrote Agrawal on Twitter, declaring that Musk determined towards becoming a member of the board regardless of being provided a seat after the billionaire grew to become the corporate's largest shareholder simply final week, shopping for 9 p.c of the corporate's stake.

"The Board and I had many discussions about Elon becoming a member of the board, and with Elon straight," reads a word despatched by Agrawal to Twitter employees. "We have been excited to collaborate and clear in regards to the dangers.

"We additionally believed that having Elon as a fiduciary of the corporate the place he, like all board members, has to behave in the most effective pursuits of the corporate and all our shareholders, was the most effective path ahead."

What Does Fiduciary Imply?

A fiduciary is kind of a standard position in enterprise, though the time period is not as well-known exterior the monetary world.

"Fiduciary" is form of an umbrella time period to explain a person who's certain by a authorized and moral duty to behave within the curiosity of a consumer. There are various circumstances that fall underneath the definition of fiduciary—the connection between brokers and traders, court-appointed guardians and their authorized wards, attorneys and shoppers, and board members and shareholders, the case that pursuits us with regards to Musk and Twitter.

Board members would usually have a fiduciary obligation to behave within the firm's curiosity and people of its shareholders when making enterprise choices, preserving good religion and belief.

From Agrawal's phrases, we take it that though Musk has not joined the board, he has taken up the obligation it brings to be a part of it.

On April 5, Twitter introduced that Musk would have joined its board, together with his appointment to change into official by April 9. On the identical day, Musk introduced he wouldn't be part of the board in any case, based on Agrawal.

No public rationalization was provided by both Agrawal or Musk in regards to the Tesla and SpaceX CEO's choice.

Elon Musk
Tesla CEO Elon Musk speaks through the unveiling of the brand new Tesla Mannequin Y in Hawthorne, California on March 14, 2019. Twitter's CEO introduced at this time that Musk won't be becoming a member of the corporate's board after turning into its largest shareholder.Frederic J. BROWN/AFP through Getty Pictures

A monetary submitting from Twitter launched on April 4 reveals that as a member of the board, Musk was restricted to proudly owning not more than 14.9 p.c of the corporate's widespread inventory excellent for so long as he served on the board, "together with for these functions financial publicity by way of by-product securities, swaps, or hedging transactions."

Now, Musk might probably improve his stake on Twitter past this restriction.

Within the days main as much as at this time's announcement, Musk has been lively in suggesting modifications to Twitter, asking customers in the event that they wished an edit button and proposing that anybody who pays for Twitter Blue—the social media's subscription model—ought to find a way to take action in dogecoin, get a blue tick and see their dashboards freed from adverts.

He additionally prompt turning Twitter's headquarters in San Francisco right into a homeless shelter.

Newsweek has reached out to Musk for remark.