Ousted Uber CEO Travis Kalanick shakes up board of directors

Timeline: Uber's management crisis

The drama at Uber just won’t quit.

Travis Kalanick, the ousted CEO along with co-founder who still incorporates a seat on Uber’s board of directors, apparently blindsided the company Friday by appointing two brand-new board members.

Kalanick tapped Ursula Burns, former CEO of Xerox (XRX), along with John Thain, former chief executive of Merrill Lynch.

“I am appointing these seats currently in light of a recent Board proposal to dramatically restructure the Board along with significantly alter the company’s voting rights. of which is actually therefore essential of which the full Board be in place for proper deliberation to occur,” Kalanick said in a statement.

Kalanick said he has “no doubt the Board will be well-served” by his appointees “as Uber moves into the next phase of growth along with prepares for a public offering,” the statement reads.

Uber said in its own statement the move came as a “complete surprise.”

Related: Ursula Burns says of which’s a ‘time of power’ for women in tech

“of which is actually precisely why we are working to put in place world-class governance to ensure of which we are building a company every employee along with shareholder can be proud of,” the statement reads.

Kalanick, who left the CEO role in June amid a series of scandals, does possess the right under the board’s current rules to make appointments.

however those rules are at the root of a lawsuit of which’s currently in arbitration, along with at the center of an ongoing controversy.

Benchmark, a venture capital firm of which took an early stake in Uber, filed a complaint against Kalanick in August. of which claims Kalanick withheld important, relevant information about the company’s scandals before the board voted to allow him to control three seats.

Related: Uber CEO to meet London transport boss as ban looms

According to a source familiar with the situation, who spoke on the condition of anonymity, Kalanick had not filled two of those board seats up until This kind of point because he was “trying to respect” the legal process.

Kalanick was prompted to make the appointments This kind of week, however, when he learned about a proposal by the company’s leadership along with Goldman Sachs (GS), an Uber adviser.

Here’s what the measure includes, according to two sources close to the situation:

–of which would likely revamp rules in a way of which would likely eliminate special voting powers previously granted to some of Uber’s early investors. The move would likely shift a great deal of voting power away through Kalanick, though he still owns a large stake inside the company.

–of which would likely apply a deadline by which Uber must go public. along with if by the deadline the board has not approved an initial public offering — however at least one-third of the board wants to move forward with an IPO — the approving board members can appoint brand-new board members until they reach a majority.

–of which would likely alter Kalanick’s control over his three board seats along with shift more control to Dara Khosrowshahi, Kalanick’s replacement as Uber’s CEO. (Kalanick currently occupies one of the three board seats he controls. The proposal would likely not change of which.)

The board may vote on the measure Tuesday.

Former board member David Plouffe said in a tweet posted Friday of which the Trump White House “seems sane by comparison” to Uber’s corporate politics.

He also voiced his support for Khosrowshahi, saying he’s “confident Dara will find a way forward.”

sy88pgw (brand-new York) First published September 30, 2017: 5:38 PM ET

Ousted Uber CEO Travis Kalanick shakes up board of directors

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