Changpeng Zhao Ban Curbs CEO Control But Preserves Shareholder Power: Report
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Key Points: Binance has banned former CEO Changpeng Zhao from running the company for life, but he retains significant influence as the majority shareholder. Zhao is prohibited from day-to-day activities at Binance, but the extent of his permissible involvement remains unclear. Changpeng Zhao banned from running the company for life, but as a majority shareholder, he retains significant influence. Changpeng Zhao Ban Limits CEO Control But Preserves Shareholder Power: Report According to Axios, Binance has banned former CEO Changpeng Zhao from overseeing the company’s current CEO, Richard Teng, for life. The ban does not seem to impact Zhao much since he is the majority shareholder in Binance. CZ, of course, obviously being the largest shareholder, will retain all shareholder rights,” says Teng Details and Implications of Changpeng Zhao Ban The ban follows a November plea agreement with the U.S. Department of Justice that left some questions open over Zhao’s role. Teng said that though he cannot manage or operate Binance, Zhao enjoys full shareholder rights. These include, among other things, the right to check on the company’s performance, vote on new board members, and propose a new chief executive if he does not like the current management. Zhao is prohibited from engaging in day-to-day activities at Binance. However, it is still unclear to what extent Zhao will be permitted to be involved; he may be allowed to act, for example, as a consultant. Read more: Former FTX Exec Ryan Salame Fails to Save His Partner Legal Experts Weigh In Besides, legal experts say the DOJ’s settlement language does not obligate the ban as part of the plea deal. Binance argues that Zhao is “prohibited from any present or future involvement in operating or managing the business.” After the plea agreement, Zhao said he would devote himself to investing in blockchain,…
Filed under: News - @ September 6, 2024 5:00 am