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http://investor.google.com/corporate/2012/founders-letter.html http://investor.google.com/corporate/2012/founders-letter.ht... > Larry, Sergey and Eric have
by jmillikin 14y ago
http://investor.google.com/corporate/2012/founders-letter.html http://investor.google.com/corporate/2012/founders-letter.ht...
> Larry, Sergey and Eric have agreed to subject their
> shares to a Transfer Restriction Agreement. This
> agreement will maintain the same link between their
> voting and economic interests that exists today, even
> if they sell some of their non-voting Class C shares.
> If the founders or Eric wish to sell or transfer their
> non-voting Class C shares, a “stapling” provision in
> the agreement requires them to either sell an equal
> number of Class B shares, or convert an equal number
> of Class B shares into Class A shares. No other
> stockholders will be subject to these restrictions
> upon the transfer or sale of their shares.
- cremnob 14y agoWhile better than not having the agreement (which terminates when their share falls below 34% of voting power), the new share structure is not shareholder friendly. Class C shares can now be issued to employees or used for acquisitions, which would dilute the economic interest of shareholders without diluting their voting interest.