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Facebook investors urge to remove Mark Zuckerberg As Board Chairman

Amna Ansar Feb 07, 2017
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Some of the investors of the facebook want to remove Mark Zuckerberg as the board Chairman of the company. The share holders urged that the co-founder and Board Chairman of the facebook should be replaced by an independent chairman.

The shareholders of facebook claimed that  independent CEO would be better as he will look after the executives of company, and will take measurements in improving corporate governance and would design improve corporate strategies.

The proposal was filed by the members of group of corporate watch dog ‘SumOfUs’.

The proposal has been filed by 333,000 share holders and of which only 1500 are actual investors.

The reason for shareholders eagerness is the approval of new capital structure by facebook. Additionally investors assume that the independent chair person will enhance the value of the shareholders and will support strong board leadership.

It is also assumed that may be the reason for the proposal is facebook’s corporate governance score is at risk. The score of corporate governance of facebook was 10 at 27 January, 2017 which is at the highest level of risk. The non-voting class C stocks are supporting Zuckerberg’s philanthropy projects because for these projects he would sell his 99% shares.

The action of the shareholders greatly shows that they are scared of the Zuckerberg’s future decisions regarding facebook.

Also read:ADB signs $325M loan deal for clean power supply in Pakistan.