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Companies tend to suffer more than they benefit from dual classes of stock.
As a red-blooded capitalist, I understand why dual classes of stock are frowned upon.
The company will have dual classes of stock that will give company insiders much more voting power than public investors to elect directors.
Peter Appert, a media analyst at Goldman Sachs, said that "you can't do battle with a company that has dual classes of stock and family ownership structure".
The Hong Kong Stock Exchange, however, doesn't allow dual classes of stock and other types of mechanisms to preserve corporate control.
But the rules of the Hong Kong Stock Exchange prohibit dual classes of stock and other types of corporate structures that let minority shareholders preserve control of companies.
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The have-nots lack this dual class structure and instead have no controlling shareholder.
None of which would have mattered without the protection provided by the dual class of shares.
And Google may be one such enterprise that can make the case for a dual class.
You may not agree philosophically with the dual class of shares that gave them control, but that's the reality".
"The dual class ownership structure of The New York Times Company gives the family solid control of the company.
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