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Facebook shareholders would have uphill climb ousting Zuckerberg from board

Sharon Gaudin | Feb. 9, 2017
Group files a proposal calling for board chairman to be an independent member

Rob Enderle, an analyst with the Enderle Group, agreed, saying that the only way Zuckerberg would be ousted from his seat is if he willingly stepped down.

"Unless [Zuckerberg] is charged with some form of illegal action, he becomes demonstrably infirm, or dies, there is no process to forcefully remove him from board control given he has the majority of shares," he added. "They have a valid concern and a common request for those that want to see good corporate governance, but there is no indication that those requesting this have the power to compel the outcome they want."

For Olds, he's surprised this issue has even been raised.

"It's hard to argue with success, and Facebook has been nothing but successful in the last several years," he said. "I don't see how removing Zuckerberg from the board would do anything good for the company… From outward appearances, they all seem to be happy living in the kingdom of Zuck. However, it appears that this might not be the case."

 

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