Does the amount of Board Members on a company have to evenly match the % of the company they represent?
Please read carefully,
On the board of a private or public company, is it required that the number of board members be evenly split to represent the different percentages of the company owned by multiple people?
Example: The VC owns 25%, 25% is publicly traded, and the CEO owns 50%. Then 4 board members are needed, 1 for the VC, 1 for the public, and 2 to represent the CEO's 50% holding?
OR
Can each member on the board represent a different percentage of the company? Example: 3 board members needed; 1 for the VC @ 25% voting power, 1 for the public @ 25% voting power, and 1 for the CEO @ 50% voting power?
References would be really helpful.
2007-12-13
09:02:47
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5 answers
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asked by
nick a
2