3 ms·

> The board has a fiduciary duty to act in the interest of shareholders. The problem is the 'shareholders' is made of multiple groups. A relatively common set

> The board has a fiduciary duty to act in the interest of shareholders. The problem is the 'shareholders' is made of multiple groups. A relatively common setup is Investors, Founders, Other Common Share Holders (Employees, Gifts). If there are 10 seats, Other Common will likely only hold 1 vote. So the board voted in its best fiduciary duty that represents 90% of the votes. It's quite easy to see how employees can get the raw end of the stick.

PeterisP 6y ago
In most jurisdictions there are strict rules on protection on minority shareholders that make it illegal for the majority of votes from robbing other shareholders of their rightful share; in such events the minority shareholders are entitled to compensation, and this is what's happening now.