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Amit Tandon: Prepare to 'unfriend' promoters

Boards in India need to create a distinction between the interest of the company and that of the promoters

Amit Tandon

Last month, Facebook announced that its board of directors had "approved a proposal to amend and restate our existing certificate of incorporation to create a new class of non-voting capital stock, known as the Class C capital stock. If the proposal is approved, we intend to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of our Class A and Class B common stock. This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg's long-term vision for our ...