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Meta shareholders call for oversight audit

A group of Meta shareholders, in collaboration with the Campaign for Accountability, has presented a motion calling for an independent assessment of the board’s competence to monitor public safety on Facebook’s platforms, according to sources. What’s at stake: Regulators, politicians, former employees, and now investors are all putting pressure on Facebook’s parent corporation.

Courtesy: Aïda Amer/Axios

“Shareholders request the board commission an independent assessment of the Audit and Risk Oversight Committee’s capacities and performance in overseeing company risks to public safety and the public interest and in supporting strategic risk oversight on these issues by the full board,” according to a letter sent earlier this month to Meta’s corporate secretary, a copy of which was seen by Axios.

In collaboration with the Campaign for Accountability, the Harrington Associates and Park Foundation, both Facebook shareholders, have written the letter. Its goal is to be included in Meta’s annual proxy and put to a shareholder vote.

The larger picture: Other shareholders, notably state investment officials in New York and Illinois, are pursuing similar resolutions this year. Facebook claims that it takes its obligations seriously, claiming that it has spent more than $5 billion on safety and security this year, according to the Wall Street Journal.

In collaboration with the Campaign for Accountability, the Harrington Associates and Park Foundation, both Facebook shareholders, have written the letter.
Its goal is to be included in Meta’s annual proxy and put to a shareholder vote.
Other shareholders, notably state investment officials in New York and Illinois, are pursuing similar resolutions this year. Facebook claims that it takes its obligations seriously, claiming that it has spent more than $5 billion on safety and security this year, according to the Wall Street Journal.

Due to Meta’s dual-class share structure, CEO Mark Zuckerberg holds majority power over any shareholder vote. In 2018, a shareholder resolution advocated for the formation of a separate risk oversight committee on the board of directors. In 2018, a shareholder resolution advocated for the formation of a separate risk oversight committee on the board of directors. It received a considerable number of votes from independent shareholders, but not a majority of overall votes.

Facebook did expand the audit committee’s responsibilities to include risk management. The latest shareholder proposal’s organizers claim that the board has failed to address the fundamental issues.
The proposal’s sponsors write in the letter that “the torrent of detrimental revelations has persisted.” They claim that the business “frequently breaches agreements to delete damaging content,” such as teen-targeted content, political misinformation, and COVID-19 falsehoods.

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