Economy

Uber board reportedly approves limiting Kalanick's power

Uber board reportedly approves limiting Kalanick's power”

The person and a second source said governance changes include expanding the size of the board to 17 directors from 11.

This week is shaping up to be an early and crucial test for whether Khosrowshahi can follow through on that goal.

The moves are expected to mark an end to a legal fight between Uber's largest shareholder, Benchmark, and the former chief executive, officer Kalanick. The changes being proposed significantly reduce not only Kalanick's but other shareholders voting power.

Obviously, the power grab forced Kalanick to affirm control once again, according to a statement that Kalanick issued on Friday.

On top of that, the proposal would also give Khosrowshahi the power to appoint the replacements for the seat of the company's three directors-Ryan Graves, Arianna Huffington, and Wan Ling Martello-in the event that they decide to leave.

"The appointments of Ms. Burns and Mr. Thain to Uber's Board of Directors came as a complete surprise to Uber and its Board".

Uber's (Private:UBER) board has confirmed the two new members added by ex-CEO Travis Kalanick last week, according to Reuters sources.

One of the many proposals being discussed is that Kalanick is to lose one of the three board seats that he controls. Benchmark, an early Uber investor, has sued Kalanick, claiming he misled investors to get those seats.

Kalanick's legal right to appoint the members still faces legal challenges from the Benchmark lawsuit. "It is therefore essential that the full board be in place for proper deliberation to occur, especially with such experienced board members as Ursula and John", Kalanick said.

"I am confident that, with their additions and Dara's appointment", he continued, "Uber will be well situated to focus on the future and continue to revolutionize how cities move".

The boardroom battle serves as yet another glaring reminder of Uber's internal dysfunction and the need for corporate governance reforms. Charles M. Elson, the director of the Weinberg Center for Corporate Governance at the University of DE, doesn't mince words about Uber by claiming the company is copying certain things that demonstrate good governance at a public company. "It can't be sustainable". Also, board members will all vote on an equal scale. The board was also set to vote on whether to sell $10 billion of stock to Japanese internet giant SoftBank, which it approved. SoftBank, which has pumped billions into ride-hailing startups overseas, has previously expressed interest in partnering with Uber or Lyft.



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