Can the weight of some of the biggest and most influential investors persuade the likes of Facebook to alter multiple tiers of voting rights?
The IPO of Snapchat owner Snap caused controversy by offering non-voting shares. Photo: Shutterstock
The long-running issue of shareholder voting rights has come to the fore again. A group of investors, including Legal & General and Dutch pension fund PGGM, wrote to both the New York Stock Exchange (NYSE) and Nasdaq, calling for a time limit on the use of multiple share classes with different voting rights, reported The Times.
Earlier this month Legal & General’s investment management arm voiced dismay that index provider MSCI decided against penalising companies that breached the “one share one vote” principle, according to Financial News.
Will the US exchanges budge on this thorny issue?
There has, gener
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