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The success stories of dual-class shares miss an incontrovertible truth

By Anita Anand

Dual-class share structures are fundamentally unfair: They leave the subordinate shareholders unprotected and cry out for a response from securities regulators. Proponents of such structures call up the success stories – Fairfax, Onex – but rarely do they focus on the incontrovertible truth that dual-class share structures undermine corporate-governance standards because the subordinate shareholders carry a lopsided share of economic risk relative to their ability to influence the corporation's affairs.

This article presents a counter view to founder centrism. Read the full article here.

Anita Anand is the J.R. Kimber Chair in Investor Protection and Corporate Governance at the University of Toronto law faculty.

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