Founders without limits : dual-class stock and the premium tier of the London Stock Exchange / Bobby V. Reddy, University of Cambridge.

Format:

Book

Author/Creator:

Reddy, Bobby V., author.

Series:

International corporate law and financial market regulation

Language:

English

Subjects (All):

Stockholders--Legal status, laws, etc--Great Britain.

Stockholders.

Corporate governance--Law and legislation--Great Britain.

Corporate governance.

Dual class stocks--Law and legislation--Great Britain.

Dual class stocks.

Dual class stocks--Law and legislation.

Corporate governance--Law and legislation.

Stockholders--Legal status, laws, etc.

Great Britain.

Physical Description:

1 online resource (xxviii, 457 pages) : digital, PDF file(s).

Place of Publication:

Cambridge : Cambridge University Press, 2021.

System Details:

text file

PDF

Summary:

Big Tech has flourished on the US public markets in recent years with numerous blue-chip IPOs, from Google and Facebook, to new kids on the block such as Snap, Zoom, and Airbnb. A key trend is the burgeoning use of dual-class stock. Dual-class stock enables founders to divest of equity and generate finance for growth through an IPO, without losing the control they desire to pursue their long-term, market-disrupting visions. Bobby Reddy scrutinises the global history of dual-class stock, evaluates the conceptual and empirical evidence on dual-class stock, and assesses the approach of the London Stock Exchange and ongoing UK regulatory reforms to dual-class stock. A policy roadmap is presented that optimally supports the adoption of dual-class stock while still protecting against its potential abuses, which will more effectively attract high-growth, innovative companies to the UK equity markets, boost the economy, and unleash the true potential of 'founders without limits'.

Contents:

Introduction

The cult of dual-class stock in the era of big tech

A tale of two cities and beyond

First among equals? : other methods of creating a divergence between voting and cash-flow rights

Shareholder democracy and corporate purpose

From controlling shareholders to dual-class stock

Theoretical benefits and detriments of dual-class stock

The empirical evidence on dual-class stock

The existing constraints

A balanced protection package for inferior-voting shareholders.

Notes:

Title from publisher's bibliographic system (viewed on 29 Oct 2021).

Other Format:

Print version:

ISBN:

9781108989893

Access Restriction:

Restricted for use by site license.