SET proposes government push for dual-class shares to draw family businesses to the stock market
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The Stock Exchange of Thailand is preparing to propose that the government promote a share structure with differing voting rights, or dual-class shares, to open the way for business owners, especially family businesses, to raise more funds through the stock market while retaining the right to govern and set the direction of the company. Professor Kitti Phong Urapeepatanapong, chairman of the SET board, disclosed that the concept aims to solve the problem of business owners who hesitate to list their companies because they worry that selling more shares to the public will reduce the family's shareholding proportion and may also dilute their right to determine the company's direction. The principle is for each class of shares to carry different voting rights, for example one share might carry two votes or five votes, while dividend rights remain equal. Kitti gave an example that if the original owner does not need to hold a high proportion of shares to preserve governance rights, they might decide to sell more shares in the market, from perhaps around 15% previously to around 40%, resulting in more shares circulating in the hands of general investors, or a larger free float. The SET is also considering how companies already listed on the exchange could adopt a share structure with differing voting rights, but this issue has no conclusion yet, and the appropriate format and approach for existing listed companies must be considered before clear rules are set. The SET has already discussed the details with the government sector and is preparing to propose the approach to the government, with related legal issues that must be addressed to make such a structure possible. It is hoped this will take concrete shape within this year.