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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.
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. Dilution of control is normally associated with the public issuance of shares. To maintain control, company founders may issue shares. single-class dual-class Consider this case: The CEO of Echo Star Communications, Charlie Ergen, owned around 5% of the company's stock, but his multiple votes per share gave him around 90% of the vote. Source: "Dish Network 2010 Annual Report," on Dish Network Investor Relations, http://files.shareholder.com/downloads/ DISH/1330128565x0x480914/DC45515A-D65F-475D-B6C2-CF83AE7A10D6/DISH_-_Web_Posting_-_3.30.11.pdf. Based on this example, which of the following statements is true? Multiple voting shares are not issued with the purpose of providing super-voting rights to a certain class of investors. O Multiple voting shares have super-voting rights, which give more control to a certain class of investors
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