Governance of dual-class firms should remain at a high level

THE legislative doors have opened for dual-class shares to be listed in Singapore eventually. Regulators who are now hammering out the fine print will have to look beyond the common share and take a creative and comprehensive approach.

Whatever roads they take must lead to the fundamental principle of governance: that interests of the leadership must remain aligned with the long-term development of the company.

Parliament a week ago approved changes to the Companies Act that will allow public companies - both listed and not - to issue shares with multiple voting rights.