By Gilbert E. Matthews, CFA, Sutter Securities, Inc. (San Francisco, Calif., USA)
What is Duel Class Structure
- “Dual class” companies have common shares with different voting rights.
- In most cases, low-vote shares either have (a) the same economic interest as high-vote shares or (b) the same economic interest plus a dividend preference
- In a few companies (primarily Swiss), all shares have one vote but the “high-vote” shares have lower par value, e.g. , 100 shares with SF10 par value have 100 times the vote of 1 share with SF1000 par value