Sheba Gumis explains the concepts underlying dual class
shares.
Dual class shares have been the talk of investors in recent
years with at least two major stock exchanges amending their rules
to allow for dual class shares to be listed on their markets and to
be more attractive to companies seeking listing.
Yet, dual class shares are relatively unknown to the Malaysian
layperson, given that such shares are not allowed to be listed on
Bursa Malaysia. Notwithstanding this, the concept of dual class
shares has existed since the early 1920s in America.
Dual class shares refer to the issuing of various types of
shares by a single company. A dual class share structure can
consist of Class A and Class B shares, for example. These classes
of shares would possess different traits, which would usually be
based on differing voting rights and possibly, economic
benefits.