3 ms·
2 Questions: Are there cases where a non-CEO founder controls the board? What are the mechanics whereby the minority stake founder(s) control the board? Some
by jaekwon 16y ago
2 Questions:
Are there cases where a non-CEO founder controls the board?
What are the mechanics whereby the minority stake founder(s) control the board? Some sort of skewed voting system? If so, what sort of legal entities allow this structure?
- faramarz 16y agoYes, there is precedent. I mentioned Frank Stronach in the comments, See http://news.ycombinator.com/item?id=1976711 http://news.ycombinator.com/item?id=1976711 I'm not sure if this is universal, but Stronach (a non-executive chairman of Magna Int.) had control over the board because of his Class B share structure. Every 1 of his B share converted to 100 Common Stock (and he had over 700 Class B shares, before he decided to give up control and convert) That's quite remarkable, considering Magna is a publicly traded company.