In April 2014, Alibaba’s impending Initial Public Offer (IPO) projected to be among the world’s largest IPO. Alibaba insisted on partnership governance, while the Hong Kong Stock Exchange did not allow listing of companies with dual-class share structure. On the other hand, the New York Stock Exchange did not object for this ownership structure.
Why did Hong Kong deny Alibaba’s proposal to give the right to its partners to nominate a majority of the board of director? Despite the various governance analysts, why New York Stock Exchange approved this request of dual class share from Alibaba? How the investors would gain the confidence about the proper utilization of their investment by top executives?
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