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Analysis

Investor Groups Cheer Calls For Limiting Dual-Class Perks

Law360 (February 16, 2018, 8:39 PM EST) -- Investor advocates on Friday lauded SEC Commissioner Robert Jackson's call for sunset provisions on dual-class stock structures, which allow company founders to reserve extra voting power compared with public shareholders, calling it a pragmatic approach that could curb perceived abuses of the practice.

Jackson, speaking Thursday at the University of California, Berkeley School of Law, blasted dual-class structures that never expire, describing the setup as akin to “corporate royalty” on grounds that it allows insiders to pass down their outsized power to their heirs. His statements...
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