News and Events for Attorneys and Executives

At Facebook, Mark Zuckerberg Moves to Tighten Gag on Shareholders – And No One Can Stop Him

By on April 29, 2016 in Corporate
Photo by Brian Solis

Photo by Brian Solis

Facebook announced that it plans to issue a third class of shares, Class C, that will not include voting power for its shareholders.

The purpose is to allow co-founder, chairman and CEO Mark Zuckerberg and his wife, Priscilla Chan, to pursue their dream of giving 99 percent of their shares to charity, without losing any of his voting control, according to a report in The Los Angeles Times.

“Shareholders will have to vote on the arrangement, but because non-Zuckerberg voting power already is a joke, we can assume it will pass,” The Times says.

Read the article.