Dual-class shares threaten shareholder democracy and good governance
Despite City enthusiasm for dual-class shares, corporate governance is largely unworkable without equal treatment for all shareholders.
Image: AshDesign/Shutterstock
We could be forgiven for thinking that the proposed changes to the London listing rules following Lord Hill’s report were a done deal. Powerful lobbying from the London Stock Exchange and other City players may have all but pushed the measures—including the introduction of dual-class shares for premium listed companies—over the line.
The recent announcement of multi-billion pound initial public offerings for London portrayed, as miraculously saved from the clutches of markets in Amsterdam and New York, must mean the advisory fees and bragging rights from IPOs are in sight.
The government’s stated post-Brexit aim “to make the U
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Understanding the true costs of compliance and non-compliance
Companies are dealing with an avalanche of new compliance rules and requirements at an ever-increasing speed, and they must understand the costs of getting it both right and wrong.
-
Tax transparency is here to stay
Companies are volunteering more about their tax affairs. But it comes in the context of governments and regulators preparing to set higher demands on disclosures.
-
Legal and regulatory roundup
Legal and regulatory news from around the globe: Shareholder Rights Directive, payment practices, watchdog's request for new powers, and risk and due diligence.
