Should Dual-Class Shares Be Banned?

Voices against dual-class shares, which violate the principles of corporate democracy and the precept of “one share one vote,” have increased over time. An influential 50-member Investor Stewardship Group (ISG), overseeing $22 trillion in assets, demands a total elimination of dual-class stock. Council of Institutional Investors (CII), representing managers of $25 trillion assets, recently demanded limiting any company’s dual-class share structure to seven years. Yet this year,  Hong Kong and Singapore stock exchanges, which initially barred the listing of dual-class shares, went the opposite way, by allowing their listing.

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