Facebook, Board of Directors recently changed its rules. Eventually, Founder and CEO also lose his control, lose majority voting control of the company only if he quits his job, or his services terminate.
The aim to initiate the rules of regulations is apparent to reclassify of Facebook shares to help Mark philanthropy plans. It will be voted on by shareholders at an annual meeting on June 20.
The board said it will be easier for the company to hire a top quality successor to Zuckerberg and to be more caution as Zuckerberg, not indicates that he intends quitting his job. He is the only social networking executive currently holds Class A and Class B common stock which represents 53.8 percent of the company’s total outstanding voting power.
According to a regulatory filing by the firm to U.S Securities and Exchange Commission if Zuckerberg were to quit the business or if employment terminated for any cause, he would not give up his majority voting control.
He would also pass his Class B common stock shares, voting power to his descendants after his death, thus leads to voting control of the company passing across multiple generations whereas Class A has one vote per share rather Class B has ten votes per share.
A committee appointed to look into the reclassification of FB’s capital structure in August. As per Mark Zuckerberg view of long-term plans to donate most of his stock to philanthropy has recommended new terms which remain “Facebook will not continue founder controlled company, it will be a founder-led company” according to the proxy filing.
Last year December, Zuckerberg announced that he would give 99 percent of his shares to philanthropy and also have informed the committee about the plan. Zuckerberg is also likely to have the final say during the shareholder vote on June 20.
The founder and CEO have owned about 4M of class A shares and 41M of class B shares representing 53.8 percent of total outstanding voting power and 14.8 percent of economic interest.
So we hopefully wait for the 32yr old CEO and founder final say on June 20.