Several months ago Facebook announced a plan to create a new, third class of nonvoting shares, designed to further strengthen Mark Zuckerberg’s voting control. According to the latest proxy information, he already holds approximately 60% of the voting power in a two class stock structure. A trial for a class action law suit, seeking to … Continued
Successfully managing a company and attracting investors is not easy. But thumbing your nose at prospective investors, by issuing shares with no shareholder rights, and then refusing to provide any guidance respecting management’s operating expectations, may not be the best approach. Under these circumstances it shouldn’t come as a big surprise if investors conclude that … Continued
In our March 15th blog, we commented on the apparent deterioration in shareholders’ rights in connection with the initial public offering of Snap, Inc. shares, which have no voting rights. This issue is garnering increased attention from institutional investors. State Street Global Advisors recently urged the U.S. financial regulator to block companies from adopting controversial … Continued
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