In a proxy submitting on Thursday with the U.S. Securities and Trade Fee, Fb’s board mentioned it’s going to ask shareholders to vote on a proposal that will convert Zuckerberg’s Class B shares into Class A shares if he’s now not in a management place.
As of June 2, Zuckerberg beneficially owned about four million Class A shares and about 419 million Class B shares, collectively representing about 53.eight p.c of whole excellent voting energy and 14.eight p.c of whole excellent financial pursuits.
The proposed transfer – to be voted on at Fb’s annual normal assembly on June 20 – is designed to verify a future Fb chief’s administration powers aren’t restricted, the board mentioned.
“These new phrases thus guarantee that we are going to not stay a founder-controlled firm after we stop to be a founder-led firm,” the board mentioned within the submitting.
Below present provisions, Zuckerberg is allowed to carry Class B shares and train majority voting management even when leaves the corporate. Zuckerberg would even be allowed to move his Class B shares, and presumably his majority voting management, to descendants after his loss of life.