Some commentators have proposed tenure voting as an alternative to multi-class voting systems. With tenure voting, the

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Some commentators have proposed tenure voting as an alternative to multi-class voting systems. With tenure voting, the longer a shareholder owns the stock, the more votes it is worth. Thus, shares held for three years might be entitled to three votes each. The theory is that such a system would encourage long-term ownership and also serve as a counterweight to insiders who have multiple votes per share. Does such a system make sense? What are the pros and cons?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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