Snap Inc. has authorized a new class of shares that ensures founders Evan Spiegel and Bobby Murphy will retain control after the company goes public, according to a restated company charter filed in Delaware on Monday.
The new class of shares ensures the founders would keep the supervoting rights they already have—a common move for a company getting its house in order for an IPO.
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The effect is similar to a stock split, but it gives shareholders more stock they can sell without affecting their voting power. That’s particularly valuable for the founders, who face some restrictions on their ability to sell. According to the filing, if either of them sells or gives away more than 70% of their class C supervoting shares, the remaining shares would convert to single-vote class B shares.
Slack Community.The new charter appears to give voting rights to some shareholders who don’t currently have them.
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