Isolating voting rights from the percentage shares owned is the way to go, if you want to go public but never want to lose control of your company.




pls can y0u further expantiate? thank you

dochenaj:
Unfortunately for them, this will amount to nothing since Mark Zuckerberg still owns majority voting rights. I think at IPO he owned 51%, what a smart guy.

Isolating voting rights from the percentage shares owned is the way to go, if you want to go public but never want to lose control of your company.

They can only impress on him to step down, but to vote him out they cannot. And he would only step down, if he thinks he has lost his groove.

pls can you further explain this?

DonFreshmoney:
Let me kukuma submit my CV to the board, LUCK might shine on me and I become Chairman of Facebook Board. I have BSc, Infotech, MSc Computer Engineering and MBA. I also have 4 certificates in coding (C++), 2 in Software Engineering and project management.

kolo, all this certificate for you alone, bro you need an higher tech, that position ain't suitable for your qualification

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

Africa mentality

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

A geek will always be a geek
People like Trump and Rupert Murdoch know what to do,it's either they don't list on the stock exchange or if they go public,then to abide by regulators requirement,they will own up to the max allowed shares and use proxies to own the rest just to assure they retain superior voting rights in the board room

ahh,they want to carry out a coup

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

Naija mentality. And that's why there are no Nigerian companies challenging on a global scale. You need to understand the principles of cooperatives

phazotron:

pls can you further explain this?

There are different classes of shares, and each class has a distinct voting capacity. For instance the Facebook shares are categorized into Class A and Class B shares, the Class B shares though constituting only about 18% of the total share, each of those shares has 10 votes per share while the Class A shares has 1 vote per share. Majority of the Class B shares is owned by Mark thus giving him a voting right of over 50%, so when it comes to corporate policies, he remains the sole determiner of what will happen.

Like I said earlier, he can only be convinced to give in but there can never be any hostile take over of Facebook from him.

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

What you said proves you know nothing about business

how can you say you will own all shares in a company?

DonFreshmoney:
Let me kukuma submit my CV to the board, LUCK might shine on me and I become Chairman of Facebook Board. I have BSc, Infotech, MSc Computer Engineering and MBA. I also have 4 certificates in coding (C++), 2 in Software Engineering and project management.

Well for a start, CEO work does not have much to do with coding. Other people are already doing the coding under you. It is more of management and controlling people effectively.

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

Hahaha! which sweat? which his company? Here's how it goes;
If you start up a company, it's all yours BUT as soon as you start to require more capital and you reach out to the capital markets, to sell part ownership/ control of the firm it stops being ALL yours.
Now you have to factor in the consent of other investors and play by capital markets rules since you took their funds.

If you want to have ultimate control over your firm as a business person, don't go to the capital markets for funds(stay Private) Or
Keep control while selling shares to them (hard to do). Founders/CEOs of public companies don't fully own their companies.

WaywardSon:
Naija mentality. And that's why there are no Nigerian companies challenging on a global scale. You need to understand the principles of cooperatives

Nigerians just don't know how to work together in groups. That's why we will be here suffering. But a group of Chinese, Arabs, Lebanese, Indians or Americans will come to this same land and setup multinational company.
Then we will be begging their gateman to help us submit CV.

Asour:


Hahaha! which sweat? which his company? Here's how it goes;
If you start up a company, it's all yours BUT as soon as you start to require more capital and you reach out to the capital markets, to sell part ownership/ control of the firm it stops being ALL yours.
Now you have to factor in the consent of other investors and play by capital markets rules since you took their funds.

If you want to have ultimate control over your firm as a business person, don't go to the capital markets for funds(stay Private) Or
Keep control while selling shares to them (hard to do). Founders/CEOs of public companies don't fully own their companies.

What if you continue mising, ride bicycle use Nokia Torch light and save all your salary. Then pay off all the money you took from the capital market?

dochenaj:

There are different classes of shares, and each class has a distinct voting capacity. For instance the Facebook shares are categorized into Class A and Class B shares, the Class B shares though constituting only about 18% of the total share, each of those shares has 10 votes per share while the Class A shares has 1 vote per share. Majority of the Class B shares is owned by Mark thus giving him a voting right of over 50%, so when it comes to corporate policies, he remains the sole determiner of what will happen.

Like I said earlier, he can only be convinced to give in but there can never be any hostile take over of Facebook from him.

Right. but there are only certain kinds of companies that can afford to do this — usually High performing/Strong Moat/tech companies — Even Facebook, If the company starts to suffer financial challenges and starts to have increased need for capital due to this, he would have no choice but to cede some control.
Generally, the capital game is a "Who needs who most" game.

uuzba:


What if you continue mising, ride bicycle use Nokia Torch light and save all your salary. Then pay off all the money you took from the capital market?

It's possible, But you'll need a lot of money to pull this off, I doubt any single founder can buy out all other capital investors from his company since you'll have to buy their shares at a premium(i.e at least more than the share price the day it is announced you want to buy them out).
Dell's Michael Dell recently did it, but even he could not do it alone. A private equity company partnered with him to buy it back.
The best thing is to never seek outside(capital markets funding) if you can't stand a challenge to your control over the business. There are many large really successful companies that have never been owned by outside investors (and are 100 % owned by the founder/founder's family) like Leibherr, JCB, Mars,Clifbar etc.

uuzba:


Well for a start, CEO work does not have much to do with coding. Other people are already doing the coding under you. It is more of management and controlling people effectively.

Yes,it mainly deals with managing people effectively. But, as the CEO of an IT company, you should have at least a basic knowledge and understanding of coding. How would you know if your employees are doing the right thing?

opalu:
Apple tried that when they expelled Steve Jobs from the company entirely. However when the company came to its kneels, the same shareholders came to their kneels begging him to return. That was when he restructured the company and brought in technological innovations that have changed the world. Today, Apple is the only corporation in earth with $1 Trillion market capitalization. Go check it.

Just like an Iceberg, Business is 10% physical and 90% spiritual. You can copy the ideas of a person, you can chase him from there and take over, it is bound to rot just like the body without the spirit is dead. That is why all who have ever hijacked my business ideas ran into trouble and some later humbled themselves and called me to help.

Amazon has joined the 1 trillion dollars club

SIRTee15:


Facebook isn't going anywhere soon...
It owns whatsapp n Instagram...
And I'm sure u use the above 2 regularly even if u dont use Facebook....
Besides, Facebook has over 2 billion users in 2017 compared with 1.4 billion in 2014....
Furthermore, they are into other stuffs like artificial intelligence, internet of things and automated driving car...
They are about to establish their own version of YouTube...
10 years ago, it's revenue was 1 billion dollars. 5 years ago, it was 5 billion dollars. 2017 revenue was 50 billion dollars.....
The world is obsessed n addicted to social media- that's the driving force and the energy pushing these internet companies....
It's got nothing to do with whether someone is active on her Facebook page or not....

Agreed with all other points except users' access status online. The users make Facebook. What's Twitter without the tweets, Instagram without the shots, Google+ without the gossips, and WhatsApp without thr accounts?
Imagine if Users in Europe and the Americas decide to ditch the app for a week in protest? Oga, those companies are what they are today because of the active users online.

peacettw:
This is what happens when you place more value on intelligent quotient rather than emotional intelligence

That was why I wanted to unfollow you, I wasn't stalking you but I admire your opinion's on health issue it shows you are really intelligent, but your last post about the new China invention, that would amaze anyone (emotionally) you would rather see all that could go wrong in it. ''I sincerely don't know how you will take this my write up o lol'' I would rather keep quite, but I had to say it because, I now have a slightly different impression of you as the one I use to have, lol I wish nairaland has inbox I would rather had written this there cheers

DonFreshmoney:



I may have not reach $500M in Net revenue, but overall, my 3 companies has Profit after tax of around $220M.

Yeah, right

And you were looking for job at Ecobank some time this year

You're a multimillionaire in lies

opalu:
Apple tried that when they expelled Steve Jobs from the company entirely. However when the company came to its kneels, the same shareholders came to their kneels begging him to return. That was when he restructured the company and brought in technological innovations that have changed the world. Today, Apple is the only corporation in earth with $1 Trillion market capitalization. Go check it.

Just like an Iceberg, Business is 10% physical and 90% spiritual. You can copy the ideas of a person, you can chase him from there and take over, it is bound to rot just like the body without the spirit is dead. That is why all who have ever hijacked my business ideas ran into trouble and some later humbled themselves and called me to help.

opalu opalu

ollah2:



Amazon too

Apple Inc is the only private company with atleast $1 Trillion valuation bro! Amazon was there for just a day before he dropped back under. Amazon only worth $863 Billion as of today.

babawella:

Apple Inc is the only private company with atleast $1 Trillion valuation bro! Amazon was there for just a day before he dropped back under. Amazon only worth $863 Billion as of today.

Nope. Apple isn't a private company

FB share is not smilling

DonFreshmoney:


Safe landing, I will be there next year, but don't know the month to be exact... am looking at Vancouver to establish a multinational business. I will have to look at the province laws there to equip myself.

Alright, hopefully we will connect.

tigerclaws:
if I'm mark I'll buy all their shares and kick their asses out of my company


Why will a company allow a total stranger to have upto 30% shares on his sweat?

if na me maximum you can have is 15-20%

make someone no come tomorrow start dragging my company with me

Mark Zuckerberg does not have 60% of Facebook as you assumed. The guy has only under 25% share of Facebook. The 60% you were referring to is voting right at board level as a result of class of his share, but not the percentage of his share in the company. 60% of share would mean Mark is worth over $200billion as the market cap of Facebook is $447billion, and not $58billion (Source: Forbes Real-Time Networth) that he is worth as at this morning. So please let us be careful and be sure we are put out genuine info and data anytime we discuss issue online.
Cheers!

ollah2:



Nope. Apple isn't a private company

What I meant by private is that it isn't own by government. Apple is a private-public liability company. I used that adjective because there is another company that has tasted the Trillion Dollar pride in the past. The first company to cross $1Trillion mark was a Chinese company (PetroChina) to be precise, before its market cap fell back under $1T. The difference between PetroChina and Apple & Amazon is that the former is government owned company while the last two are Privately owned-Public quoted companies.

dochenaj:
Unfortunately for them, this will amount to nothing since Mark Zuckerberg still owns majority voting rights. I think at IPO he owned 51%, what a smart guy.

Isolating voting rights from the percentage shares owned is the way to go, if you want to go public but never want to lose control of your company.

They can only impress on him to step down, but to vote him out they cannot. And he would only step down, if he thinks he has lost his groove.

Mark's parents and siblings own some stakes in FB. Unless he voluntarily step down to focus on another challenging goal, the board member don't have higher voting rights

DonFreshmoney:
Let me kukuma submit my CV to the board, LUCK might shine on me and I become Chairman of Facebook Board. I have BSc, Infotech, MSc Computer Engineering and MBA. I also have 4 certificates in coding (C++), 2 in Software Engineering and project management.

Hope you have a job already, if not check whether you are carrying a certificate and empty head or check I'd you have been remembered by ur village people. What you studied is a hot cake in the labour market and more still U can launch ur own startup

Asour:


Right. but there are only certain kinds of companies that can afford to do this — usually High performing/Strong Moat/tech companies — Even Facebook, If the company starts to suffer financial challenges and starts to have increased need for capital due to this, he would have no choice but to cede some control.
Generally, the capital game is a "Who needs who most" game.

You realize he only owns about 28% of the total shares right now. He can sell his Class A shares but never his Class B shares except he wants a hostile takeover.

No one would want to invest in an uncertain and underperforming company anyway.

dochenaj:

You realize he only owns about 28% of the total shares right now. He can sell his Class A shares but never his Class B shares except he wants a hostile takeover.

No one would want to invest in an uncertain and underperforming company anyway.

"No one would want to invest in an uncertain and underperforming company anyway" Really? Is their any certain company that you know of ? there are few certainties in these things AND people Invest in Underperforming companies! Just Not every Investor.

Infact there are investors that specialize in Underperforming companies (where they see an underlying value unrealized) . When they invest, they done do Class A/B— They take control. that's why I said if Facebook goes into financial difficulties and bankruptcy is not an option for him.
This has happened severally, RIM (blackberry) is a fine example.

It's a "Who needs who most "game. That's why control share class system was created. At the root of it, it benefits only the founder.

they should just forgive the guy abeg, he will not do it again