UPDATED 01:27 EDT / OCTOBER 02 2017

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Uber power struggle rages on: Ex-CEO Travis Kalanick appoints two new board members

Uber Technologies Inc. cofounder and former Chief Executive Travis Kalanick appointed two new board members on Friday, which somehow came as a total shock to the rest of the board.

Kalanick named Xerox Corp. former Chairwoman and Chief Executive Ursula Burns and former Merrill Lynch Inc. Chief Executive and Chairman John Thain as the new board members to the existing eight members. The decision was made unilaterally and is widely seen as a power move by Kalanick.

The move comes after a proposal on Thursday made by Uber and Goldman Sachs that would reduce Kalanick’s strength in the company by taking away the super-voting power of early investors such as himself. In the new proposal all shareholders would have equal voting privileges.

“I am appointing these seats now in light of a recent Board proposal to dramatically restructure the Board and significantly alter the company’s voting rights,” Kalanick said in a statement. “It is therefore essential that the full Board be in place for proper deliberation to occur, especially with such experienced board members as Ursula and John.”

In a statement issued by Uber, the company said the appointments came as a complete surprise, though it was no secret that Kalanick had the right to appoint new board members. “That is precisely why we are working to put in place world-class governance to ensure that we are building a company every employee and shareholder can be proud of,” read the statement.

The move is widely regarded as Kalanick strengthening his position against Uber investor Benchmark Capital, which earlier this year sued him for fraud and breach of contract and fiduciary duty. At time, Benchmark had accused Kalanick of entrenching himself in the board for his own “selfish ends.” Benchmark issued a somewhat abrasive statement, saying Kalanick’s “overarching objective is to pack Uber’s Board with loyal allies in an effort to insulate his prior conduct from scrutiny and clear the path for his eventual return as CEO.”

Image: GES 2016 via Flickr

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