Should stock exchanges allow listing of shares with different voting rights? can you answer with the...

Should stock exchanges allow listing of shares with different voting rights? can you answer with the detailed explanations please?

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Expert Solution

Yes stock exchanges should allow the listing of shares of differential voting rights as it will help the owners and promoters to to list their company and still control their company through a minimal stake.

These are dual class shares which have differential voting rights and these have a higher number of voting than the original shares of the company which are listed on the stock exchanges.these share should also be allowed to be listed as it will help in maintaining a transparency and control through disclosure requirement on the stock exchanges.

New York stock exchange allows listing of the shares with differential rights as it can be seen in the case of FORD in which 4% of overall shares held by the FORD FAMILY control the 40% of the stake in the organisation so it needs to be listed in order to fairly represent the interest of owners and provide them with and obligation to disclose related information regarding dual class shares.

jeff jeffy answered 1 year ago

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