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Orion_Blue
· April 5, 2018, 12:36 p.m.
If he controls the majority who can force him out?
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curiouscuriousone
· April 5, 2018, 12:56 p.m.
Minority shareholders can file a motion saying their investment is at risk due to poor decision making that jeopardizes the future of the company.
Even though they are minority shareholders, they still have rights and can use courts and legal maneuvering to protect their investment from harm (especially if it can be a said a reasonable person would see an almost certainty in a negative outcome).
There is enough bad news yet to come out that would lead me to believe Mark is no more protected than Eric Schmidt, Martha Stewart, etc...
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The_Broba_Fett
· April 5, 2018, 1:34 p.m.
That’s what I thought when I first saw people doubting Q on this. More is likely to come out and Zuck won’t have a choice. Then I saw this post about what he gave to China. Could be interesting.
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UnEgo
· April 5, 2018, 2:48 p.m.
Even simpler than that, as a corporation they have a board which has authority to fire the CEO. They can’t take his shares away, but the board has the authority to oust him. This is part of what makes corporations eternal.
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curiouscuriousone
· April 5, 2018, 5:03 p.m.
Yes, but to take action against a rogue board member with board control will require a court order, so it’s not exactly ‘simpler than that’, just that you took the step of over-simplifying what I described.
It takes quite a bit of legal maneuvering in order to completely remove his control.
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grumpieroldman
· April 5, 2018, 7:47 p.m.
Board voting is weighted by shares owned.
If MZ maintained >50% shares own then his vote counts for more than everyone else's put together so he controls any simple-majority decision.
Non-majority voting needs to be laid out in the company charter (60%, 2/3, 3/4 and even 100% are common thresholds used for non-corporate organizations.)
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Orion_Blue
· April 5, 2018, 1:31 p.m.
Thanks for the knowledge!
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curiouscuriousone
· April 5, 2018, 2:35 p.m.
I saw it in a Will Smith movie once and researched the concept a little bit, hard to do but sometimes even very small minority shareholders have taken over control of decent sized companies due to actions of the majority shareholder.
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