Legal Environment 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 6

Ford Motor Co. and Facebook have both created dual classes of stock so that the founders can continue to control their company even after it goes public. Should corporate laws permit this? Should some shareholders be more equal than others? If the founders want to control a company, why shouldn't they buy enough regular stock to do so? It is one thing for Mark Zuckerberg to maintain control of Facebook, but should his grandchildren also have the right to control the company?