New York: Facebook Inc`s board has proposed removing Mark Zuckerberg`s majority voting control in the event of the social media giant`s chief executive and founder deciding to exit management at some point in future.
In a proxy filing on Thu with the United State Securities and Exchange Commission, Facebook`s board said it will ask shareholders to vote on a proposal that would convert Mark Zuckerberg`s Class B shares into Class A shares if he is no longer in a leadership position.
As of 2 June, Zuckerberg beneficially owned about 4 million Class A shares and about 419 million Class B shares, collectively representing about 53.8% of total outstanding voting power and 14.8 percent of total outstanding economic interests.
The proposed move – to be voted on at Fb`s annual general meeting on June 20 – is designed to make sure a future Fb chief`s management powers aren`t limited, 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,” the board said in the filing.
Under current provisions, Mark Zuckerberg is allowed to hold Class B shares and exercise majority voting control even if leaves the company. Mark Zuckerberg would also be allowed to pass his Class B shares, and possibly his majority voting control, to descendants after his death.