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Twitter director Egon Durban won’t leave board after shareholder vote

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Musk was expected to be appointed to Twitter’s board of directors on Saturday. However, the billionaire informed Twitter that Musk wouldn’t actually be taking over the seat on the board.

Andrew Burton | Getty Images News | Getty Images

TwitterDirector Egon Durban will not resign from the board, even though the shareholder vote voted against him, according to the company. regulatory filingOn Friday.

Twitter stated that Durban’s directorship on numerous other boards of public companies meant his board did not support shareholder support. Twitter acknowledged that Durban sits on boards for six companies publicly traded, and said that he had agreed to reduce his participation on public company boards to five by 2023.

“While the Board does not believe that Mr. Durban’s other public company directorships will become an impediment if such engagements were to continue, Mr. Durban’s commitment to reduce his board service commitment to five public company boards by the Remediation Date appropriately addresses the concerns raised by stockholders with regard to such engagements,” the company said in the filing. “Accordingly, the Board has reached the determination that accepting Mr. Durban’s Tendered Resignation at this time is not in the best interests of the Company.”

“The Board considers Mr. Durban a highly effective member and believes that he brings to the Board an unparalleled operational knowledge of the industry, a unique perspective, and an invaluable skill set and experience with mergers and acquisitions,” the filing added. “The Board noted that Mr. Durban has strengthened its ability to oversee the Company’s long-term value creation strategy and effectively govern its implementation. Further, Mr. Durban is consistently well-prepared, engaged and a meaningful contributor to Board meetings and discussions.”

International Shareholder Services, an international corporate governance consulting firm advised against Durban’s continuing service as director. This was based on his other commitments to the board.

Durban, co-CEO, and managing director at private equity firm Silver Lake was present on the board. unanimously approved Twitter’s sale to billionaire Elon Musk last month.

Silver Lake worked previously with Musk on deals, investing $100 million in his solar company, SolarCity before it was bought by Musk-run Tesla. Musk said he was working with Silver LakeHe claimed that he would take Tesla private in 2018, but it never happened.

Twitter shareholders have filed separate filings this week. proposed class action lawsuitMusk and Twitter were sued over their acquisition. This has caused volatile stock swings. According to the lawsuit, Musk purchased Twitter shares knowing that insider information was available based on conversations between board members including Durban. Twitter, Silver Lake and Musk declined to comment.

WATCH: A timeline of the Elon Musk-Twitter takeover saga

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