By Jimmy H. Koo
Sen. Elizabeth Warren (D-Mass.) June 5 sent a letter to New York Stock Exchange Euronext and Nasdaq OMX Group, urging them to consider proposing rules requiring a “one-share-one-vote” corporate structure for listed companies.
“I believe the investing public would benefit greatly if you issued proposals for public comment soliciting input on this most fundamental of corporate governance issues,” Warren said in the letter addressed to NYSE Vice President John Carey and Nasdaq Executive Vice President and General Counsel Edward Knight.
“If a company goes to the public markets to raise money, long-term ordinary common stock investors--a category that includes directly or indirectly millions of retirees and workers--should be entitled to certain basic rights.” Warren said. “One of the most basic of those rights is one-share-one-vote,” she added.
According to Warren, a member of the Senate Banking Committee, unequal voting rights help to “entrench management and a board that can enrich themselves at the expense of the general investors.” The recent spike in the number of public companies using multi-class stock structures “underlines the urgency of issuing a proposal,” Warren said.
Spokesman for NYSE declined to comment and Nasdaq could not be immediately reached for comment.
To see Senator Warren's letter, go to http://about.bloomberglaw.com/blaw2/files/2013/06/Senator-Warren-letter-to-NYSE-Nasdaq-6-5-2013.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)