Facebook Shareholders Agreement
numerously Facebook is a perfect example of how the lack of a shareholders` agreement can damage your reputation and your relationship with your co-founders. After the conception of Facebook, Mark Zuckerberg and his co-founders, Dustin Moscowitz and Eduardo Saverin, failed to create a shareholders` agreement that eventually gave rise to a dispute in which Saverin tried to resist Zuckerberg`s attempt to dilute Saverin`s shares in the company. It was a high-profile case and risked damaging Facebook`s reputation and Zuckerberg`s relationship with a longtime friend and colleague. Zuckerberg and the current leadership team and board have not been particularly adept at solving Facebook`s many persistent problems. But there is no way for shareholders to create people or systems that might be better able to tackle these problems. It is clear that a shareholders` agreement is necessary to ensure that divergences are kept to a minimum. If you are starting your business, a shareholders` agreement is one of the first documents to be settled. Contact Linkilaw to create a clear and effective shareholders` agreement. The debate over Facebook`s CEO/chairman was highlighted at the last annual shareholders` meeting, at which 68% of outside shareholders backed a proposal to make the chairman an independent position, after expressing concerns and disapproval of how CEO and Chairman Mark Zuckerberg handled various mistakes, including a security breach in September, which involved 30 million Facebook accounts. Often, the reason why founders/CEOs of tech companies want super-voting rights to have a longer track to spur investment in R&D innovation, which take time to pay, to drive a competitive divide, without pressure to achieve short-term returns for public shareholders. Mark Zuckerberg controls the majority of Facebook`s voting rights and will continue to benefit from that control after the IPO, according to an unusual deal he made with some prominent investors and colleagues among Facebook`s shareholders. .