POLL: Are dual-class shares bad for corporate governance?

Author: IFLR Correspondent | Published: 18 Mar 2019
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Lyft's upcoming initial public offering (IPO) has reignited the debate on dual-class stock structures, which has been relatively quiet since fellow unicorn Snap's offering in 2017.

The controversial practice is generally favoured by tech companies helmed by owner-founders, often reluctant to relinquish significant control - and likewise vilified by investor groups.

As in the past, a group of pension funds and asset managers is attempting to persuade Lyft's board to scrap the existing structure, which would give founders 20 votes each per share, from its upcoming offering.

Against this backdrop, IFLR wants to know: are dual-class stock structures actually bad for corporate governance? Or is it much ado about nothing?


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