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Different classes of common shares, also called dual-class shares, may be issued by corporations. The main difference between the various classes is typically voting rights.

image text in transcribed Different classes of common shares, also called dual-class shares, may be issued by corporations. The main difference between the various classes is typically voting rights. True or False: One of the issues surrounding a dual-class share structure is that management can make unilateral decisions that may be contrary to the interests of noncontrolling shareholders. False True Consider this case: Bombardier Inc. has a dual-class share structure. Chairman Laurent Beaudoin and his in-laws in the Bombardier family are firmly in control of the company despite holding less than 20% of the total equity. Based on this example, which of the following statements is true? Multiple voting shares have super-voting rights, which give more control to a certain class of investors. Multiple voting shares are not issued with the purpose of providing super-voting rights to a certain class of investors

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