Bill Gates Blocking Fundamental Change At Microsoft; Three Top Shareholders Want Microsoft Chairman To Quit

Microsoft Chairman Bill Gates is under pressure from the company's investors to vacant his position as the Chairman of the company.

According to sources, three of the top 20 investors in Microsoft Corp, named not disclosed, are pressurizing the board to influence Gates to quit. Amongst them, the three anonymous investors hold 5% of the company's stock.

As reported by Wall Street Journal, the three investors are of the view that Gate's presence prevents the board from taking strategic policy decisions at Microsoft.

Moreover, they feel that Gate should not be involved in the workings of the special committed that was formed to search the new CEO who will take over the office from outgoing CEO, Steve Ballmer. In August 2013, Ballmer announced his decision to retire from Microsoft within a year.

It is unlikely that the board will give in to the demands of the investors and ask Gates to quit. Though his stake has reduced to 4.5%, from 49% in 1986 before Microsoft went public, one cannot undermine his role in the success and future of the software giant. Interestingly, this is another aspect that the investors' lobby group is worried about: Bill Gate's power are not in proportion to the shares held by him.

In fact, as per a pre-set agreement, Gates sells 80mn worth Microsoft shares every year and utilizes the proceeds towards philanthropic activities of Bill & Melinda Gates Foundation. It is estimated that by year 2018, Gates' financial stake in Microsoft will become zero.

Microsoft Corp is facing a lot of market uncertainties, especially in its Windows OS and Office suite segments as personal computers are on a decline due to surge in the popularity of tabs and smartphones.  The company recently acquired Finnish mobile manufacturer Nokia but lags far behind Google and Apple in market competition over mobile computing.

There was mixed reaction to the news. While Microsoft refused to comment on the matter, a section of investors feels that Gates should play a more active role in the affairs and goals of the company, perhaps as the CEO.