Dual Class or Second Class? by Aaron Bennett, CFA by Heather Sharpe JANUARY 27 2021 Executive Summary The trend for dual class share structures in newly public companies is growing globally, especially within the technology sector. Due to the misalignment of voting and economic interest, dual class share structures are not generally considered best practice from a governance perspective. There is evidence that, on average, the effect of a dual class share structure is linked to neutral to positive shareholder value creation for a period of time. Jarislowsky Fraser takes a nuanced case-by-case view of dual class share structures that focuses on the alignment and behaviour of the controlling party relative to long-term shareholders, the rationale for unequal voting, and the mitigants against potential abuse of minority shareholders. Click here for the full report. About Institutional Private Wealth Global Research News & Insights Contact Client Portal Careers Privacy & Legal Accessibility CONTACT US © 2021 Jarislowsky, Fraser Limited. Canada - English Canada - Français United States - English International - English International - Español