HONG KONG, Oct 13 (Reuters Breakingviews) – Hong Kong-based FWD has curbed the flexibility of its founder’s clan to maintain management of the Asia-focused insurer. In an updated prospectus forward of its anticipated $2 billion New York float, entrepreneur Richard Li’s supervoting shares will now evaporate if he dies. The submitting’s preliminary iteration might have stored the votes alive for years by letting Li switch them to an instantaneous member of the family.
That not less than removes a part of the beneficiant sunset clause Li was initially granted. But he nonetheless retains the opposite half: outsized voting rights for seven years after the general public float. Founders could have a professional argument for maintaining a agency grip as they construct a enterprise, although that’s more durable to argue for insurers than for pioneering tech outfits. In addition, FWD’s impartial administrators – who rely on Li’s votes for his or her seats – can prolong his management by as much as eight years. Nixing these perks, too, could be splendid, however eradicating the prospect of household management is a welcome begin. (By Jennifer Hughes)
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