Founders without Limits

Dual-Class Stock and the Premium Tier of the London Stock Exchange

Bobby V. Reddy

• Publisher: Cambridge University Press
• Year: 2021
• Print ISBN:
  9781108839358
• eBook ISBN:
  9781108997317
• Topic: Law
• Subtopic: Corporate Law
• Index: Law

Big Tech has flourished on the US public markets in recent years with numerous blue-chip IPOs, from Google and Facebook, to new kids on the block such as Snap, Zoom, and Airbnb. A key trend is the burgeoning use of dual-class stock. Dual-class stock enables founders to divest of equity and generate finance for growth through an IPO, without losing the control they desire to pursue their long-term, market-disrupting visions. Bobby Reddy scrutinises the global history of dual-class stock, evaluates the conceptual and empirical evidence on dual-class stock, and assesses the approach of the London Stock Exchange and ongoing UK regulatory reforms to dual-class stock. A policy roadmap is presented that optimally supports the adoption of dual-class stock while still protecting against its potential abuses, which will more effectively attract high-growth, innovative companies to the UK equity markets, boost the economy, and unleash the true potential of 'founders without limits'.

Table of contents

• Cover
• Half-title page
• Series page
• Title page
• Copyright page
• Contents
• List of Figures
• List of Tables
• Preface
• Acknowledgements
• Table of Cases
• Table of Legislation and Regulation
• List of Abbreviations
• Introduction
• Part I Putting Dual-Class Stock into Context
• Part II Evaluating Dual-Class Stock
• Part III Formulating a Policy on Dual-Class Stock
• Epilogue
• Appendix Comparison of Inferior-Voting Shareholder Protections on Major Dual-Class Stock Exchanges
• Index