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SEC Committee Wants More Disclosure On Dual-Class Shares

Law360 (March 8, 2018, 7:43 PM EST) -- A Securities and Exchange Commission advisory committee on Thursday endorsed a policy recommendation that demands public companies with multiclass stock structures provide their shareholders with better disclosure about the ramifications of such setups, which reserve outsize voting power for company insiders.

The SEC’s Investor Advisory Committee, which advises the agency on issues impacting investors, unanimously agreed to back a subcommittee report that contains several recommendations on the matter. Specifically, the report urges the agency’s Division of Corporation Finance to respond to the growth of multiclass structures by requiring...
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