03 Jun. 16, SAN FRANCISCO: Facebook has decided to change its norms so that Mark cannot have absolute power in case if an instance occurs due to which he has to leave the organisation.
Currently Mark has majority voting control of the social networking site. In case if he quits, he has no control upon the majority voting.
In a proxy filing on Thursday with the U.S. SECC, Facebook’s board said it will ask stockholder to poll on a proposal that would convert to Class A shares from Zuckerberg’s Class B shares if he is no longer in a leadership position .
The poll will be held at Facebook’s annual general meeting on June 20 and is designed to make sure a future chief’s management powers of the company are not limited.
As of June 2, Mark owned about 4 million Class A shares and around 419 million Class B shares, totally representing about 53.8 percent of overall voting power and 14.8 percent of overall economic interests.
According to sources and reports by Reuters, the board said in the filling, “These new terms thus ensure that we will not remain a founder-controlled company after we cease to be a founder-led company”.
As per present provisions, Zuckerberg is permitted to hold Class B shares and exercise majority polling control even if quits the organisation. He would also be allowed to pass his Class B shares, and possibly his majority polling control, to descendants after his death.
