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SEC’s Jackson seeks dual-share compromise with ‘sunset’ provisions

Joe Mont | February 16, 2018

Companies that broker in “disruptive technology” are increasingly testing the limits of how much they can disrupt traditional shareholder arrangements.

It is a problem that new SEC Commissioner Robert Jackson wats to tackle. He is urging exchanges to consider taking steps to prohibit companies with dual-class structures from listing securities if their shareholder structures do not include sunset provisions.

The pitch came during Jackson’s first public remarks since joining the Securities and Exchange Commission, at an event Held at the University of California’s Berkley campus on Feb. 15.

In 2017, 19 percent of U.S. companies that went public on U.S. exchanges had dual-class structures with unequal voting rights, according to the Council for Institutional Investors.

The debate over dual-class shares gained increased attention in March when is Snap Inc., the parent company of Snapchat, a photo and video-sharing app, launched a $3.9-billion initial public...

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