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Dual class shares subvert investor rights, harm trust in markets

At risk is undermining the reputation for a strong regulatory regime with engaged shareholders.

SGX, as a for-profit entity, has a commercial duty to its shareholders. It has to cast its net wide to seek additional sources of revenue. But wearing its hat as regulator means SGX also has a duty to the wider public interest.

THIS year's AGM (annual general meeting) season saw many companies amending their constitutions to reflect changes to the Singapore Companies Act. The revised Companies Act makes it possible for public companies in Singapore to issue shares with differential voting rights. While this new...