Should securities regulators allow companies going public with dual-class shares?

Author

Aurelio GURREA-MARTINEZ, Singapore Management UniversityFollow

Publication Type

Blog Post

Version

publishedVersion

Publication Date

1-2018

Abstract

In the past years, several companies, such as Google, Linkedin, Facebook, and Alibaba, went public with dual-class share structures, that is, share structures that typically include two classes of ordinary shares carrying unequal voting rights. Those shares with more voting rights (eg, ‘class A’ shares) are usually held by the company´s founders and executives, while the rest of the company´s share capital, formed by stock with regular voting rights (eg, ‘class B’ shares), is generally sold to outside investors.

Keywords

Comparative law, Dual-class shares, Voting rights

Discipline

Business Organizations Law | Comparative and Foreign Law

Research Areas

Corporate, Finance and Securities Law

Publisher

Taylor & Francis (Routledge): SSH Titles - no Open Select

Citation

Aurelio GURREA-MARTINEZ. Should securities regulators allow companies going public with dual-class shares?. (2018).
Available at: https://ink.library.smu.edu.sg/sol_research/3702

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.