Shopify shareholders approve new voting rights for CEO Tobias Lutke stock split

Shopify Inc. shareholders vote to consolidate voting rights as long as founder and CEO Tobias Lütke is in the company, ensuring that he, his family, and affiliates retain 40% of the company’s voting rights. Did.

The approval received at Shopify’s annual shareholders meeting approved a new corporate governance structure that grants Lütke non-transferable founder shares.

This proposal was opposed by at least one advisory company, Glass Lewis and Company. The move limits the rights of shareholders and states that it does not adequately protect the interests of minority shareholders.

Shareholders have also approved a 10: 1 split of the company’s Class A and Class B shares. This is what Shopify positions as a way to make voting stocks more affordable for the border segment of the population and diversify its ownership base.

Shopify didn’t immediately announce how much approval it had for the two measures.

Voting takes place after the value of Shopify’s stock has plummeted in recent months, and a month after executives, including Lütke, tweeted that they are buying stock as a sign of confidence in their business.

By Tara Deschamps

Canadian press


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