Research On Voting Rights Of Dual-share Structure

Dual-class shares are treated as weighted voting shares or shares with unequal voting rights,giving some holders a type of stock that is more preferential than ordinary shares,allowing them to control the company without giving much thought to the attitudes of ordinary shareholders.The founder of a company is usually regarded as the key factor in the successful operation of the company.They need special equity to ensure the implementation of their decisions.Companies have to expand their capital pool when they launch initial public offerings.Dual-class shares are tempting to attract large investments,and investors want more heavily weighted shares to steadily reduce the risk of their investment Generally speaking,the founders of a company do not want their rights to be transferred so that they are effectively suspended.Therefore,it is particularly necessary to seek some kind of system as a defense mechanism or form checks and balances on other shareholders.The structure enables the two parties to meet their needs,granting the founders superior equity to maintain their fact control of the company while giving outside investors the opportunity to participate in the management of the company's development.The main purpose of this paper is to clarify some key issues for the introduction of this system in mainland China.First,describes the necessity of dual share structure in the current import,the world will be coronavirusoutbreaks and Russia and Saudi Arabia's oil war background,the emerging technology companies in four U.S.stocks fusing,under the condition of the Chinese market by affected performance better than most of the traditional structure of a-share companies,dual share structure,the structure of the voting rights under set more become A key problem.Secondly,it reviews the debate on the reasonable division of voting rights of dual-class share structure,and briefly reviews the performance of dual-class share structure companies in various legal areas of the world over time.Thirdly,the advantages and disadvantages of dual-class share structure are analyzed.In the middle,some case studies are introduced to clarify how dual-class share structure companies affect investors and prevent risks.Finally,the author gives some Suggestions on the establishment of the relevant system under the situation of the increasing prevalence of dual-class share structure companies.The specific proposal is divided into three parts.First,hard rules.Legal provisions that force the introduction of third-party supervision.Specify entry criteria to meet investor needs.Mandatory joint management laws,including statutory limits on voting differences and the number of new voting shares under dual-class share structure.Second,flexible rules.Legal limit time to weaken the transformation.Weakening and transformation of legal events.Statutory emergencies are temporarily restored to traditional structures.Finally,special measures are necessary.Carry on the special mark to the dual share structure company.Set up a separate section of risk information prompt,including special information disclosure system,special equity transfer restrictions.