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6 things investors must know about dual-class shares

Bloomberg Published on Mon, Jul 10, 2017 / 12:21 PM GMT+8

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SINGAPORE / HONG KONG (July 10): The governance structure used by companies such as Facebook, Alibaba and Volkswagen is going global, and not everyone is happy.

Dual-class shares, as they’re known, give company founders super-sized power over their businesses even if they only hold a small slice of the stock. While the formula is popular, especially among technology firms – it blends public shares with the private-equity model – many investors bristle at its undemocratic nature.

Proposals by exchanges in London, Hong Kong and Singapore to allow dual classes mean they’re likely to become more common, despite complaints.