Differential Voting Rights in Listed Companies in Denmark and Sweden - to be Challenged or Boosted by Harmonization?

Abstract

The pending proposal for a directive on multiple-vote share structure is likely to liberalise the use of such shares in the EU. However, in some Member States, including Denmark and Sweden, such shares have been allowed for decades and have for many years also been used in listed companies. Since these experiences seems to be relevant for Member States once they have to decide on how to implement the directive, the current regulation in the two jurisdictions is analysed. In addition, the use of such shares is examined also based on empirical studies undertaken on segments of the companies listed in Denmark and Sweden. It is shown that despite the liberal regulation in the two jurisdictions there has been a decline in the use of such shares, in particular in Denmark, and the reason for this development and its implication for the success of the directive, is discussed.

Keywords: Multiple vote share structure, differential voting rights

JEL Classification: K22