‘Get out of the Boardroom, says Facebook Shareholders to Mark Zuckerberg’
When Facebook shareholders say that Mark Zuckerberg lacks the trait to lead the corporate governance, the reaction of Zuck would have been, What. . . ??
That’s true.!
A group of shareholders are pressurising Facebook Chief executive Mark Zuckerberg to give up his position as chairman of the board. You can imagine how it feels like to be scolded by the shareholders of the company you have formed by employing each and everything you have.
The proposal was led by SumOfUs, an online campaign platform which it claims is committed to curb the growing power of corporations.
A statement released by them said: “In our view, shareholder value is enhanced by an independent board chair who can provide a balance of power between the CEO and the board and support strong board leadership. Independent board leadership is sorely needed at Facebook following the board’s decision in 2016 to approve a new capital structure which reduced the rights of Class A shareholders without requiring a majority vote of those shareholders.”
This is something likely to happen when someone proposes to donate 99% of the wealth. But this would also mean giving up voting control over Facebook. So, in a bid to keep Zuckerberg in control, during the company’s shareholder meeting in June, participants were asked to vote on a proposal to issue Class C shares. It was later approved by the shareholders. The creation of the Class C shares would allow Zuckerberg to sell the non-voting stock, but keep the voting Class A and Class B shares that would let him retain control of Facebook.
Woah !! This is too much man. How the world show its real colors revolving around the money.
Hang around for more details.
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