Epiroc has dual share classes. A shares entitle the owner to one vote while B shares entitle the owner to one tenth of a vote. A shares and B shares carry equal rights to a part of the company’s assets and profit.
Dual share classes are common in Sweden and represent a majority of the aggregate market capitalization of main market listed companies in Sweden.
The dual share classes are a governance mechanism which facilitates a stable, long-term investor base, while at the same time enabling high liquidity in the shares. According to the Confederation of Swedish Enterprise (Sw. Svenskt Näringsliv) investors holding shares without multiple voting rights have solid protection under Swedish corporate law, including:
• a strong principle of equal and fair treatment of shareholders,
• qualified majority requirements for key material shareholder decisions,
• high degree of transparency,
• shareholder pre-emption rights on share issues, and minority powers to take specific action, including to request minimum dividends, minority auditors and special examiners.