How 10% of Shares Can Control Over Half the Votes
Summary
Hollow Point Trading shares an explainer on how dual-class share structures can concentrate voting power. In its example, 90 ordinary shares carry one vote each while 10 founder shares carry 10 votes each, allowing the founder to control more than half the votes despite owning only 10% of the economic shares.
https://youtu.be/ykamJ6xn_1M
Ten percent of shares can control more than half the votes #DualCla...
Ten percent of the shares can carry more than half the votes. Consider a hypothetical company with ninety ordinary shares carrying one vote each, and ten founder shares carrying ten votes each. Assume both classes have identical economic rights per share, with no other voting securities. There are one hundred economic shares. The founder owns te...
