A considered approach to dual class share listings

AS Singapore Exchange (SGX) moves into the final consultation with detailed listing rule changes to pave the way for companies seeking dual-class share (DCS) structures to list here, the chasm between those in favour and those against remains just as wide as when the debate first started years ago.

Not surprising, some fractions remained unappeased by SGX's proposed safeguards to the two major risks related to DCS structures - expropriation and entrenchment. They clamour for even tighter rules to ensure the those holding the multiple vote (MV) shares do not abuse the structure at the expense of minority shareholders' interests.

Robson Lee, partner, Gibson, Dunn & Crutcher LLP, is among the camp advising tighter rules.