Reasearch On Control Right Of High-tech Enterprises' Multi- Class Common Stock Structure

With the rapid global economic development and our government's efforts to promote"Mass Entrepreneurship and Involvement in Innovative Development",the number of high-tech enterprises within the Internet sector in China has significantly grown.Due to the ever-changing ownership structure and unique role of founders in high-tech Internet companies,the ownership structure surfaced as an extremely important topic to be considered and discussed.This study talks about the multi-class common stock structure.We looked into SNAP Inc.'s listing in the American stock exchange as a case study.We split this study into FIVE main chapters.The chapters one and two give a brief introduction and general understanding to the multi-class common stock structure,referencing articles and scholarly whitepapers.The third chapter talks about SNAP Inc's company's background,its common stock structure as well as its business operations.The fourth chapter analyses the multi-class common stock structure as well as its importance in attracting and encouraging "Mass Entrepreneurship and Involvement in Innovative Development" in China.The last chapter highlights key recommendations that China can consider with regards to the multi-class common stock strategy.Based on our study,we derive with key recommendations from both internal and external perspectives:1)The internal institutional design of such multi-class common stock structure should limit the ratio of common stocks to preferred stocks,restrict the liquidity of multi-class common stocks,limit the number of issued stocks,limiting the withdrawal of preferred stocks.2)The external perspective should consider launching multi-class common stock structure trials,establishing a comprehensive supervision system for listed companies,increasing the disclosure requirements for companies that utilize the multi-class common stock structures,and establishing a comprehensive remedy system for minority shareholders.