Dual equity is AB shares, and the core of AB shares is different rights in the same share. Simply put, it is to separate the right to vote from the right to share dividends. Under the dual ownership structure of AB shares, companies can issue common shares with different voting rights, which are generally called Class A and Class B, namely AB shares. JD。 COM's equity model is such a model.
The two-tier ownership structure is very common in the United States, which enables the founders and other major shareholders of the company to retain enough voting rights to control the company after listing. 2065438+On April 24th, 2008, HKEx issued a new IPO regulation, stating in the summary of HKEx's exposure in official website that HKEx allowed companies with dual shareholding structure to go public.
Dual ownership structure, as an unconventional ownership structure, innovates a new model of the same share with different rights on the basis of absorbing the traditional structure of the same share with the same rights. This also makes the founder Liu hold 80% of the voting rights with only 15.8% of the shares, and firmly grasp the control of the company.
Dual ownership structure can protect the rights and interests of founders, who usually invest a lot of time, energy and money in the initial stage of the company, hoping to maintain control over the company and ensure the development direction of the company. By setting up special shares, founders can have more voting rights and exert greater influence on the company's decision-making
The purpose of implementing dual ownership structure
Long-term development: Dual ownership structure can help the company realize its long-term development strategy. Founders usually regard the company as their own business and hope to manage and control the company for a long time. By setting up a special unit, the founders can effectively resist the pressure from external investors and the influence of short-termism, so as to better implement long-term strategies and investments.
Improve the efficiency of corporate governance: special shares usually have higher voting rights, which can enable founders or key management to participate in corporate decision-making and governance more effectively. They can give full play to their professional knowledge and experience to promote the development and innovation of the company.