Li Ka-shing says he is not a fan of dual-class shares
Hong Kong tycoon says he prefers one share one vote, amid debate over Alibaba-like shares
Li Ka-shing has weighed in on the debate over dual-class share structures that give certain stakeholders a greater say than others and is preferred by technology companies.
“I have always been of the view that one-share-one-vote is better. Many countries have this system,” said Asia’s richest man yesterday after the annual shareholder meeting of CK Hutchison, the revamped entity that now houses all of the Li family’s non-property assets from ports, retail and energy to telecoms and infrastructure.
Li’s remark, which he did not elaborate on, marks a shift of stance from the time the tycoon himself sought to issue shares with super-voting rights.
In 1987, both Cheung Kong and Hutchison Whampoa, along with Jardine Matheson, proposed to issue shares with superior voting power than ordinary shares. Regulators rebuffed their request at the time and no exception has been made since.
It’s important that people like him do speak out because if we start this [dual-class] system in Hong Kong, we will be on a slippery slope
The Hong Kong Stock Exchange has proposed to allow a two-tier share structure after losing the Alibaba IPO to New York last year. Such structures give business owners the benefit of controlling the company with less capital, and is preferred by start-up technology firms whose founders often have to sell down their interests early on to raise funds.