Facebook Inc’s board has decided something for Mark Zuckerberg in case the founder decides to quit management in future.
In a proxy filing with U.S Securities and Exchange Commission, the board stated that if Mark Zuckerberg is no more in the leadership position, shareholders would be asked to vote on a proposal which states Zuckerberg’s Class B shares would be converted into Class A shares, owing to which he wouldn’t be able to exercise majority voting control.
As on the 2nd of June, Mark owned around 419 million Class B Shares and 4 million Class A shares. This constitutes for 53.8% outstanding voting power.
This proposed move would be voted on at the AGM of Facebook on the 20th of June. Basically this move for ensuring that the powers of future Facebook Chief Management aren’t limited. The board added that the main aim of this regulation is making it easy for the company to hire quality successor to Mark who wouldn’t be from his family or wouldn’t be shadowed by the founder. Moreover, the board also added that as of now Zuckerberg doesn’t have any intentions to quit.
In the filing, the board said “These new terms thus ensure that we will not remain a founder-controlled company after we cease to be a founder-led company,”
In the current agreement, Zuckerberg is allowed to hold Class B shares and exercise voting control even if he quits. Let us see what happens on 20th of June….
