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dual class shares

Italian government back tracks on loyalty shares

February 12, 2015

A measure introduced by the Italian government to incentivise partial listing of family businesses and encourage long-term shareholdings has been amended after institutional investors raised concerns that it unfairly benefited controlling shareholders.

Last year the Matteo Renzi-led government allowed listed companies to introduce “loyalty shares”, which grant shareholders double voting rights if they hold stock for more than two years.

News Corp shareholders voice disapproval at family control

November 18, 2014

Independent shareholders have voted overwhelmingly to abolish the dual class share structure of media empire News Corp at its recent annual meeting, but Murdoch family control means the company will stick with the status quo.

The Murdoch family holds 40% of the voting rights in the publishing empire, despite owning just 12% of shares, allowing it to effectively control the company with a minority shareholding.

Saudi prince backs News Corp share structure

July 26, 2011

News Corp’s second biggest shareholder, Prince Alwaleed bin Talal, has dismissed calls for a change to the company’s dual-class share structure, reported the Financial Times.

News Corp’s second biggest shareholder, Prince Alwaleed bin Talal, has dismissed calls for a change to the company’s dual-class share structure, reported the Financial Times.

“Investors went into News Corp knowing the class A and B share structure. No one can cry wolf now,” Alwaleed told the FT.

News Corp has a two-class share structure, whereby B-class shares have voting rights and A-class no voting rights. Currently, the Murdoch family control nearly 40% of the voting shares and around 12% of the non-voting shares.

“Dual class shares: aristocracy or meritocracy?"

September 1, 2008

Family businesses always have to balance the importance of family harmony against making decisions that are best for the business.

Tom Davidow says:
Family businesses always have to balance the importance of family harmony against making decisions that are best for the business. While family needs should bow to what is best for the business, unless family values and relationships are addressed, the force of family dynamics can overwhelm and potentially cripple the business.