A person picks an apple at a farm. (Photographer: Karolina Wojtasik/Bloomberg)
Shares with differential voting rights have attracted a great deal of controversy as they militate against a basic norm of shareholder democracy, one that requires each share to carry one vote. In DVR structures, different classes of equity shares may carry varied voting rights, thereby creating a disparity between the economic and control rights of shareholders in a company. While DVRs are advantageous in promoting entrepreneurship ...