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Dual Class Recapitalization

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Dual Class Recapitalization
The new issue of common stock that a company distributes to current stockholders in exchange for previously-issued common stock. The new common stock usually has fewer voting rights. Dual class recapitalization increases the board of directors' control over the management of the company.


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ACS has been considering alternatives to enhance shareholder value including the discussions with a group of private-equity investors, as well as the possible dual class recapitalization proposal described in the Company's September 30, 2005 proxy statement.
Sisneros, 1992, "Substitute for Voting Rights: Evidence from Dual Class Recapitalizations," Financial Management (Autumn), 35-47.
26, 1993, dual class recapitalization in which an equal number of "B" non- voting shares were issued to go with each share of common stock owned on or before Jan.
 
 
 
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