According to a letter published in the Federal Register on Monday, Trump appointed Deputy Secretary of Commerce William Kimmitt as the representative who will exercise veto and oversight rights on behalf of the US government over the Class G Preferred Stock (golden share) held in US Steel. The President also sent David Shapiro, the chief legal counsel of the Department of Commerce, to the company's board of directors to represent the US government.
Trump's move came after Nippon Steel's acquisition of US Steel was approved despite controversy. The President had approved the deal in June, giving him a say in the company's strategic decisions, and US Steel was subsequently delisted from the New York Stock Exchange following the acquisition.
President Trump's golden share grants him critical powers to protect US Steel's US-based production capacity and the company's structure, which is linked to national security. In this context, Trump or his appointed representative can veto decisions such as changing the company's name, moving its headquarters from Pittsburgh, shifting production outside the US, or closing domestic production facilities.
In his letter dated November 20, Trump emphasized that the golden share ensures US Steel's operations continue in the US, stating that these powers over the company will be exercised in accordance with the national security agreement.
The golden share arrangement is not specific to Trump's term. After leaving office, this authority will be assumed by future US presidents or their designated representatives.
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