Differential share ownership has become a preoccupation with some tech companies but, argues Kerrie Waring, there’s little evidence that it helps companies plan for the long term.
The protection and enhancement of minority shareholder rights has been a long-standing focus of the International Corporate Governance Network (ICGN). As such, ICGN has long advocated a preference for the "one share, one vote" standard as the optimal structure for companies wishing to benefit from access to public capital. This ensures the equitable treatment of all shareholders and prevents managerial entrenchment, particularly in companies where the board is dominated by a controlling owner.
ICGN advises against ownership structures that allow disproportionate control via voting rights over publicly listed companies relative to economic
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