SEC commissioner raises questions about unequal voting rights for shareholders

Washington

ONE of two current members of the US Securities and Exchange Commission on Thursday raised questions for companies that offer shareholders unequal voting rights, saying the regulator should "focus on how some innovations may prove detrimental to investors".

"Unequal voting rights present complex and new issues that need to be understood and addressed. We also must be mindful of the precedent being created," Democrat commissioner Kara Stein said. "What is the effect on capital formation and emergent public companies when the bundle of rights offered to shareholders in a public offering excludes voting rights?" asked Ms Stein, who was speaking at a meeting of the SEC's Investor Advisory Committee held in Washington, DC.