Firm says Shopify's plan to augment founder Tobi Lütke's power in the e-commerce company only passed because of the support from an early company investor and director.
Move comes six months after Zipes left Shopify, where she played a key role in building and leading the e-commerce powerhouse’s legal team from pre-IPO through the pandemic.
Company says 53.68 per cent of shareholders, excluding founder and chief executive Tobi Lütke, voted in favour of a plan to grant him key voting power at the company.
Move ensures Lütke, his family and affiliates will hold 40 per cent of the e-commerce software giant's voting power.
Ottawa-based software firm's stock ended the day down more than 14 per cent after company reported a first-quarter loss of US$1.5 billion.
'Shopify effect': Software giant's merchants generated US$444B in economic activity in 2021, company says
Canadian merchants on Shopify’s platform pumped US$23.8 billion into the country’s economy and helped create more than 142,000 jobs last year, new report says.
Proposal would preserve founder and CEO Tobi Lütke's voting power, but provide sunset provisions that prevent him from transferring that power.
Bench strength: Shopify hires accounting software entrepreneur Ian Crosby to oversee banking products
Bench co-founder will lead Shopify Balance, which offers products such as physical or virtual cards merchants can use to deposit and withdraw money from ATMs.
Ottawa-based company's stock fell to a low of $914 on the TSX as it announced it expects revenue growth for 2022 to be lower than the 57 per cent growth it achieved in 2021.
Shopify said the new sales channel with JD.com, which launched on Tuesday, opens the door to 550 million customers in China.