Designing Dual Class Sunsets: The Case for a Transfer-Centered Approach

Dual class capital structures have spread exponentially in recent years across much of the corporate world, as has previously been reported on this blog. Dual class listed companies today account for around $4 trillion of US total stock market value including 9 percent of the S&P 100, and the dual class stock (“DCS”) phenomenon has become one of the most significant issues in global corporate governance today.

A dual class capital structure is one that gives certain inside investors voting rights disproportionate to their economic interest in a company. This enables them to prevail over less privileged outside investors on … Read more