Under the proposed legislation, Musk might no longer be considered a "controller" of Tesla, Quinn said. That's because Musk does not currently hold one-third of Tesla's voting securities, which would be the requirement under the proposed legislation. Those transactions range from going-private deals, to mergers and acquisitions, to board and executive compensation decisions.
"The real role of corporate law is to protect minority investors," Quinn said. "With this bill, the legislature is saying, 'Now, you know what? Protect them less.'"