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Managing the pros and cons of dual-class listings a balancing act

Singapore Exchange will need to carefully assess the requirements that should be imposed on companies seeking to list a dual-class share structure here.

On the one hand, a dual-class share structure allows founders control over significant decisions of the company, while allowing them to access the equity markets for additional financing for the company; on the other, it limits investors of their voting rights and, consequently, their ability to participate in shareholders' meetings.

THE investment and business community has lately been abuzz with reactions to the recent move by Singapore Exchange (SGX) to consider the listing of dual-class shares. In its 2016 annual report, SGX revealed that "an overwhelming majority" of the members of its Listing Advisory Committee (LAC)