Zuckerberg, founder of Facebook, has defended the unusual company structure chosen for the eye-catching philanthropic venture launched to celebrate the birth of his daughter. Zuckerberg will give away 99% of his stake in Facebook, worth $45bn (£30bn), to fund the Chan Zuckerberg Initiative.
Rather than set up a simple charity, Zuckerberg formed a limited liability company (LLC) to administer the money. An LLC brings certain tax exemptions but also allows investment for profit.
Critics have said the structure of the Chan Zuckerberg Initiative could provide a way for the Facebook founder to avoid paying tax on the sale of his shares. They have also questioned why he did not set up a not-for-profit charity instead. An LLC allows Zuckerberg to keep hold of the voting and allocation of the shares he puts into it.