5 ms·
I am extremely uncomfortable with these less voting right shares that so many companies(FB, Google et al) favor these days. It perverts the open market and rem
by sireat 5y ago
I am extremely uncomfortable with these less voting right shares that so many companies(FB, Google et al) favor these days.
It perverts the open market and reminds me of shenanigans in Eastern European stock markets and Asian ones where it is the norm for minority shareholders to be left out to dry.
It creates a conflict of interest for those with more voting rights than ownership. Usually the interests are aligned but there are no checks and balances anymore.
In the old days a corporate raider could challenge a badly run company and threaten to overturn the board.
So now you have 14% of company but have 65% of voting rights you can do whatever to those 85% "minority" shareholders.
So those with Class B shares get to have their cake and eat it too.
This is close to FB building a 5B money hole(https://www.youtube.com/watch?v=JnX-D4kkPOQ https://www.youtube.com/watch?v=JnX-D4kkPOQ) in a desert.
- B1FF_PSUVM 5y ago> you have 14% of company but have 65% of voting rights Good point. It makes no difference if the other shareholders have 1 or 0 votes per share. They have no control of the company, they just loaned it money - in practice they have variable yield bonds. Also, viewed that way, the company has a much smaller market cap and a huge debt.