One share, one vote: Is it a big deal?

THE market has been abuzz with rumours this week that the Singapore Exchange (SGX) is close to allowing multiple classes of shares for companies that list here. The Business Times reported on Tuesday that the SGX's Listings Advisory Committee (LAC), an autonomous body that provides independent opinions on unusual listing applications for the Exchange, is set to lay out the ground rules for such share structures very soon.

The move is undoubtedly geared towards attracting more listings to our shores, while the oft-cited criticism of such share structures is that they threaten the very foundation of shareholder democracy.

But, is it really simply a matter of whether business interests rank above those of investors'? And will investors necessarily be shortchanged if such structures are adopted?