As Yahoo Inc. considers selling itself, Jerry Yang is finding himself in an awkward position.

One of Yahoo's largest shareholders, the hedge fund Third Point LLC, on Friday called for Mr. Yang to resign from the Internet company's board because of reports that he has proposed taking a controlling stake in Yahoo along with other buyers.

The hedge fund said Mr. Yang's actions created a conflict of interest because of his role as a Yahoo director who will vote whether to accept bids from other suitors. Mr. Yang must 'declare whether he is a buyer or a seller