ENVC Individual Assignment # Case Memo II

(Due 11:59 pm Tuesday the 29th)

Dear Class ENVC,

Greetings and this case brings our attention to the ownership and control issues in high
tech entrepreneurship, which provides a distinctive type of challenge in addition to that
of the large corporation.

Look forward to discussing it Wednesday,

Francis

The Second Case - Facebook: A Look at Corporate Governance (2018)

Submit your memo on the case above, for all 3 questions below (300 words)
1. When did Facebook pursue dual-class and why? (100 words, the date is not
specified in the case but your outside research is allowed for our in-depth
discussion)
2. What is the potential regulatory problem of dual-class structure? (100 words)
3. What specific policy combination would you suggest the regulatory body to
consider in order to reduce the potential long-term side effects of issuing
dual-class shares? Why? (100 words)

For the related readings in the Indian and US contexts:

The issue of dual-class structure is becoming an important framework for the startup
ecosystem in the United States, due to its corporate governance implications.

IndiaTech proposes key changes in SR shareholding rules to Sebi (ET, 2021)

“Private control with Public money: How far can we go?” (VIDHI, 2019)

“The Untenable Case for Perpetual Dual-Class Stock.” (Professors Bebchuck and
Kastiel, Harvard Law School Forum, 2017.04.24.)

“What’s the Problem with Dual-Class Stock? A Brief Response to Professors Bebchuck
and Kastiel.” (Berger, Harvard Law School Forum, 2017.04.17)

“Uber vs. Lyft: Who’s at the Wheel?” (Harvard Law School Forum, 2019)

“Big investors fight back over dual-class shares. Controversial structures are the
‘scourge of corporate governance.” (Financial Times, 2019.11.24.)