THE LEX COLUMN: Unequal voting rights that favour founders are a poser to shareholders

More than a fifth of all the companies that listed shares on US exchanges last year used a multiclass structure, according to Jay Ritter at the University of Florida. Shares with excess voting rights let founders or other insiders wield long-term control while holding a comparatively small stake.

In theory this power dies with the founder. . Co-founders Larry Page and Sergey Brin still hold more than 51% of voting power despite stepping back from running parent company Alphabet. But when they die or transfer their stock the shares lose their super votes.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

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