DUAL-CLASS SHARE STRUCTURE AND ITS SUITABILITY IN SINGAPORE

Abstract

With the recent removal of the one-share-one-vote restriction for public companies in Singapore by inserting section 64A into the Companies Ac/1 pursuant to the passing of the Companies (Amendment) Bill 2014 on 8 October 2014, this paper examines the suitability of such a move to join other jurisdictions in allowing for dual-class shares. This analysis will primarily focus on listed companies, rather than public companies alone since the latter is not contentious, and mergers and acquisitions (M&A) of public companies. This paper argues that dual-class shares are desirable and necessary in Singapore, provided that adequate safeguards are put in place to reduce and neutralise its risks.