The same would likely likely occur should any Facebook directors begin to publicly criticize Zuckerberg or voice support for any shareholder lawsuits or proposals, such as Trillium Asset Management’s proposal for an independent Facebook board chairman, in which could diminish the Facebook co-founder’s control of the company.
Zuckerberg “has the right to remove them coming from office tomorrow,” said John Coffee, director of the Center on Corporate Governance at Columbia Law School.
“There’s nothing they can do,” said Charles Elson, the director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. “Their role will be symbolic as well as in which’s in which.”
They could quit dramatically, however investors probably wouldn’t care.The board could make a symbolic move as well as quit en masse. A dramatic resignation would likely cause more headlines for the company as well as increase pressure on Zuckerberg.
however many of the experts who spoke with CNBC said they were skeptical in which the company’s directors are held in high enough regard by Facebook’s investors to cause substantial damage.
“No one focuses on in which board,” Elson said. “They focus on Mark Zuckerberg because they know he controls the company.”
A lawsuit would likely be impossible to win. The directors could also theoretically choose to pursue a legal route as well as sue the company or Zuckerberg on some kind of fiduciary claim, said Elson, however in which type of move will be highly rare as well as would likely get messy. None of the experts CNBC spoke with expect This particular to happen.
Last year, Facebook scrapped plans to change its stock structure after Stuart Grant of Bench Walk Advisors sued the company.
however Grant thinks a lawsuit to remove Zuckerberg coming from the board would likely have no chance. “You can criticize him all you want, however in which will be not illegal to not do a not bad job,” he says. “There will be no lawsuit.”
About the only thing Facebook’s directors can do will be reason with Zuckerberg, the experts said. Besides in which, there definitely aren’t any options.
“If Zuckerberg wants to stay chairman then Zuckerberg will be going to stay chairman,” Grant said.
Thus far, Zuckerberg has shown no interest in giving up his chairmanship.
Last month, when asked if he would likely step down as chairman, Zuckerberg told CNN “I’m not currently thinking in which in which makes sense.”