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Amidst Data Privacy Scandal, Facebook Stockholders Petition Zuckerberg to Reform Voting Rules

The Infinite Brief
Facebook has been accused of violating users’ human rights and failing to create adequate risk management structures in a heated exchange with stockholders yesterday.

Facebook’s stockholder voting structure had created an environment in which such a crisis could arise.

Although CEO Mark Zuckerberg does not hold a majority of company shares, the ones he does own are Class B shares, and hold 10 votes per share. The rest of these Class B shares are held by a small group of insiders, while outsiders can buy a separate class of shares, with one vote per share.

Effectively, this setup – which isn’t uncommon in big corporations – means outside shareholders don’t have the power to force change on the company if insiders don’t want it.

The unequal voting structure means that not only do proposals put forward by stockholders have little chance of getting off the ground, board membership can be dictated by the higher-ups.

Originally via The Register

Facebook has been accused of violating users’ human rights and failing to create adequate risk management structures in a heated exchange with stockholders yesterday.

See the original article at https://www.theregister.co.uk/2018/06/01/facebook_slammed_by_stockholders_data_scandal_tantamount_to_human_rights_violation/

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