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Facebook's record is the best argument for banning dual share classes: if you want to keep control of your company, you shouldn't be able to do that at the same
by roguecoder 8y ago
Facebook's record is the best argument for banning dual share classes: if you want to keep control of your company, you shouldn't be able to do that at the same time as selling most of it off. If you are running a public company, you should be accountable to your shareholders.
- swift532 8y agoI disagree, those shareholders know what they're getting into when they buy the stock. I do agree with just about 95% of criticism directed at Facebook, so this isn't me defending them specifically. I just don't see why dual share classes should be forbidden as long as people are properly informed when purchasing non voting ones. If I offered you 10% of my bakery's profits but told you explicitly that you'd have no voice in how I run it, it could be a good deal for both of us and we'd both know what we're getting into.
- roguecoder 8y agoIt's not about whether it's a "good deal" for the investors: it is that as a society allowing unaccountable business dudes to run roughshod over society isn't working out so well.
- wmf 8y agoIf you eliminate dual share classes then those dudes will remain unaccountable by never going public.