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This is a vast departure from the common practice in the stock market, which is: one share, one vote.
A shareholder proposal to scrap the structure and replace it with a one share, one vote system was narrowly defeated at the company's annual general meeting last week.
Mr. Montagnon said he welcomed the commission's moves against golden shares today, calling them "steps towards implementing the principle of one share, one vote".
A great divide thus sprang up: existing companies with one share, one vote and at the mercy of the markets versus companies with dual-class stock.
There is a common idea of one share, one vote, so that your economic interests are the same as your voting interests".
That defense succeeded in fending off Mr. Braginsky, though the board accepted some of his demands and agreed to consider the "one share, one vote" idea next year.
Similar(36)
The European Union considered imposing a one-share, one-vote rule on all members in 2007, but abandoned the idea as the financial crisis set in.
Many companies break the one-share-one-vote principle.
Scandinavians dislike the directive's one-share-one-vote principle.
One-share-one-vote is not a divine right; nor is a wholly free market for takeovers.
A study published in 2012 by the Investor Responsibility Research Centre Institute, a think-tank, concluded that American companies that diverge from the principle of one-share-one-vote suffer from lower returns, higher share-price volatility and various other ills including weak accounting controls and damaging transactions with related parties.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com