LOYALTY SHARES: AN ITALIAN PERSPECTIVE
In this insight, Francesco Surace analyses the implications of the adoption of dual-class and loyalty share mechanisms in Italy and Spain, posing some key questions:
- Are double voting rights or loyalty shares useful systems to reward longterm shareholders or do they serve to strengthen positions of control?
- Does the introduction of majority voting require new governance for the companies that adopt it?
- Are there more efficient systems than double voting rights to reward long-term investors?
- Does the introduction of double voting rights make it necessary to think about some forms of balancing or corrective measures to corporate governance?