Grab shareholders agree to double voting power of Class B ‘super-voting’ shares

[SINGAPORE] Shareholders of ride-hailing and delivery player Grab have voted in favour of a proposal to double the voting power of each Class B share to 90 votes, from 45 votes previously.

Some 85.9 per cent of total valid votes cast at an extraordinary general meeting (EGM) on Tuesday (Mar 24) were in favour of the special resolution.

At least two-thirds of valid votes were required to pass the resolution.

The Class B shares are held by Grab’s founder and group chief executive officer Anthony Tan as well as other key figures, such as the company’s co-founder Tan Hooi Ling and former president Ming Maa.

Assuming there is no conversion of Class B shares into Class A ones, which carry one vote per share, this could lift CEO Tan’s voting power to as much as 74.9 per cent – up from 59.1 per cent as at Jan 31 and 60.4 per cent five years ago.

Grab’s Class B shares grant its key executives greater voting power – a common practice among US tech companies that allows founders to retain control.

In its circular sent to shareholders on Mar 6, Grab said that “maintaining (Anthony Tan’s) majority voting power is a prerequisite for satisfying the regulatory requirements of the Monetary Authority of Singapore”.

CEO Tan’s retention of voting power “provides a buffer against potential dilution from future corporate events, such as mergers and acquisitions or financings”, the company said.

Grab’s board had recommended that shareholders vote in favour of the resolution “to solidify its capital structure to preserve (its) focus on long-term growth”.

It also cited the need to “maintain a majority Singaporean control” over GXS Bank – Grab’s digital bank joint venture with Singtel – to meet the domestic regulatory requirement.