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They invested in the for-profit part, not the non-profit part. The board is for the non-profit organization.
by xuki 3y ago
They invested in the for-profit part, not the non-profit part. The board is for the non-profit organization.
- SllX 3y agoTechnically speaking the same Board of Directors is represented 4 times within that hierarchy, including the entity Microsoft is invested in which is one of the two entities that have investors in them and which still have a fiduciary duty to their shareholders, even as subsidiaries of the non-profit. That’s where a lot of Microsoft’s leverage lies if it came down to a lawsuit over the last couple of weeks. If Microsoft wants a board seat, they’re going to get a board seat one way or another.
- ethanbond 3y agoWhat fiduciary duties? The purple box on every investment and employment agreement states in no uncertain terms that the for-profit org is completely subordinate to the non-profit. IIRC it specifically states they don’t have any obligation to attempt to return money to investors.