The Roundtable will focus on loyalty shares as a legal solution for encouraging long-term ownership, a concept that is gaining traction in Europe with the support of the European Commission, and has also attracted interest in the United States. Loyalty shares that confer additional voting rights have a long tradition in France, were recently introduced in Italy, and are expected to be introduced in an ongoing reform of Belgian company law. In the U.S., loyalty shares with “tenure voting” or “time-phased voting” have appeared in a small number of companies and are included in the listing requirements for the newly proposed “Long Term Stock Exchange” (LTSE). Loyalty shares might also confer additional cash-flow rights to long-term holders rather than votes. This Roundtable will critically examine these developments, with the goal of evaluating whether loyalty shares have a future in the U.S. and whether they should.
Marco Becht, Solvay Brussels School, ECGI and CEPR
Edward Rock, NYU Law and ECGI
09:30: Welcome & Introduction
09:45 - 11:15: Session 1
11:15 - 11:30: Coffee break
11:30 – 12:45: Session 2
12:45 - 13:45: Lunch
13:45 – 15:45: Session 3
15:45 - 16:00: Conclusion and Summing Up
Programme queries should be directed to Marco Becht (Marco.Becht@ecgi.org)
or Edward Rock (firstname.lastname@example.org)
Practical queries should be directed to Elaine McPartlan (email@example.com)
The event is structured around presentations which are intended to stimulate further interventions and discussion between all attendees. The use of slides is possible but not necessarily encouraged. The prior distribution of written material is encouraged.
Friday, 7 December 2018
Welcome and Introduction
Loyalty Shares with Tenure Voting - A Coasian Bargain? Evidence from the Loi Florange Experiment
Becht, Marco and Kamisarenka, Yuliya and Pajuste, Anete, Loyalty Shares with Tenure Voting - A Coasian Bargain? Evidence from the Loi Florange Experiment (April 2018). European Corporate Governance Institute (ECGI) - Law Working Paper No. 398/2018. Available at SSRN: https://ssrn.com/abstract=3166494 or http://dx.doi.org/10.2139/ssrn.3166494
Will Tenure Voting Give Corporate Managers Lifetime Tenure?
Edelman, Paul H. and Jiang, Wei and Thomas, Randall S., Will Tenure Voting Give Corporate Managers Lifetime Tenure? (February 1, 2018). Vanderbilt Law Research Paper No. 18-04; European Corporate Governance Institute (ECGI) - Law Working Paper No. 384/2018. Available at SSRN: https://ssrn.com/abstract=3107225 or http://dx.doi.org/10.2139/ssrn.3107225