Multiple Voting Shares: Don't Call It A Comeback

Dual class share structures have been thrust back into the spotlight by a recent flurry of initial public offerings of subordinate voting shares, a proposed going private transaction of a dual class share company and shareholder approval of amendments to an issuer's multiple voting share terms.

However, multiple voting shares have been a fixture of the Canadian financial markets for over 60 years. From holding companies of insurers, real estate investments or communications assets to retailers and restaurants, and from manufacturers of electronics, semi-trailers, snowmobiles or bicycles to resource and children's entertainment companies, Canadian issuers from a variety of industries have dual class share structures. Further, from founders to venture capitalists, and from families to financial investors, dual class share structures have been utilized by a range of shareholders to access Canadian capital markets.