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Yeah, pressure from people who have authority to fire you. I don't think that's the case for Zuckerberg. "Even after the IPO, Zuckerberg remains Facebook's sin

Yeah, pressure from people who have authority to fire you. I don't think that's the case for Zuckerberg. "Even after the IPO, Zuckerberg remains Facebook's single largest shareholder, with 503.6 million shares. And he controls the company with 56 percent of its voting stock." (http://www.msnbc.msn.com/id/47491836/ns/business/ http://www.msnbc.msn.com/id/47491836/ns/business/) Does anyone know what sort of recourse the minority shareholders and the other 44% voting holders have if Mark runs the company into the ground?

rgrieselhuber 14y ago
Pretty sure he's not planning on running it into the ground.
- nnnnnnnn 14y ago
  No on said he did. Nobody plans on running companies into the ground. It still occurs with unsurprising regularity. Lots of interesting books out there which talk about why.
  - rwmj 14y ago
    Unfortunately people do plan to run companies into the ground (usually so they can exit the smoking shell with a fat profit) which is why these laws are necessary.
- joering2 14y ago
  that depends. to the ground financially? if ads click-through wont progress and they wont find mobile revenue model, it will be extremely hard for Zuck to keep users happy AND keep this operation running (financially, that is).
muddylemon 14y ago
Zero. http://www.slate.com/articles/business/moneybox/2012/02/facebook_s_ipo_how_mark_zuckerberg_plans_to_retain_dictatorial_control_his_company_.html http://www.slate.com/articles/business/moneybox/2012/02/face...
Jimmie 14y ago
AFAIK just sell out and tank the price.
sliverstorm 14y ago
Err... is it normal for there to be recourse? If you do not have a controlling interest, you do not have control. That's that. If you aren't comfortable with that, sell.
- dsl 14y ago
  Shareholders may bring suit against an officer on behalf of a company. It is designed to protect minority investors against exactly the scheme Zuck has set up. The corporation is the benefactor of any damages to prevent abuse by shareholders. See http://en.wikipedia.org/wiki/Derivative_suit http://en.wikipedia.org/wiki/Derivative_suit
Tuna-Fish 14y ago
Well, he still has fiduciary responsibility to the shareholders, so they can sue him if he does something clearly stupid. Given how long such lawsuits take, it will of course be too late by then.

rgrieselhuber 14y ago

Pretty sure he's not planning on running it into the ground.

nnnnnnnn 14y ago
No on said he did. Nobody plans on running companies into the ground. It still occurs with unsurprising regularity. Lots of interesting books out there which talk about why.
- rwmj 14y ago
  Unfortunately people do plan to run companies into the ground (usually so they can exit the smoking shell with a fat profit) which is why these laws are necessary.
joering2 14y ago
that depends. to the ground financially? if ads click-through wont progress and they wont find mobile revenue model, it will be extremely hard for Zuck to keep users happy AND keep this operation running (financially, that is).

muddylemon 14y ago

Zero. http://www.slate.com/articles/business/moneybox/2012/02/facebook_s_ipo_how_mark_zuckerberg_plans_to_retain_dictatorial_control_his_company_.html http://www.slate.com/articles/business/moneybox/2012/02/face...

Jimmie 14y ago

AFAIK just sell out and tank the price.

sliverstorm 14y ago

Err... is it normal for there to be recourse? If you do not have a controlling interest, you do not have control. That's that. If you aren't comfortable with that, sell.

dsl 14y ago
Shareholders may bring suit against an officer on behalf of a company. It is designed to protect minority investors against exactly the scheme Zuck has set up. The corporation is the benefactor of any damages to prevent abuse by shareholders. See http://en.wikipedia.org/wiki/Derivative_suit http://en.wikipedia.org/wiki/Derivative_suit

Tuna-Fish 14y ago

Well, he still has fiduciary responsibility to the shareholders, so they can sue him if he does something clearly stupid. Given how long such lawsuits take, it will of course be too late by then.