Swedish academics warn that measures proposed by the Hill Review won’t be effective—and may hinder the benefits of dual-class shares.
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The debate about dual-class shares for premium listings on the London Stock Exchange usually revolves around those who think they are a good idea and those who say they rob shareholders of a voice. New entrants to the discussion say they work—but not with the governance safeguards currently proposed for the City.
Academics in Sweden, where dual-class shares are permitted, have taken a close look at proposals in the so-called Hill Review and say measures proposed to ensure the highest standards of governance won’t work and might even undermine the very reasons for introducing shares with extra voting rights.
According to Erik Lidman
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