Friday, June 22, 2012

Google shareholders approve unusual stock split

FILE- In this Thursday, April 16, 2009, file photo, Google headquarters in Mountain View, Calif. Google's shareholders are expected to approve on Thursday, June 21, 2012, the company's plan to issue a new class of stock. Google's co-founders, Larry Page and Sergey Brin, and Executive Chairman Eric Schmidt are pushing for the move to ensure that they maintain long-term control of the company. (AP Photo/Paul Sakuma, File)

FILE- In this Thursday, April 16, 2009, file photo, Google headquarters in Mountain View, Calif. Google's shareholders are expected to approve on Thursday, June 21, 2012, the company's plan to issue a new class of stock. Google's co-founders, Larry Page and Sergey Brin, and Executive Chairman Eric Schmidt are pushing for the move to ensure that they maintain long-term control of the company. (AP Photo/Paul Sakuma, File)

(AP) ? Google shareholders have approved an unconventional stock split that will ensure that the company's co-founders remain in control.

The plan passed Thursday at Google's annual shareholder meeting calls for the creation of a new class of non-voting stock.

Larry Page and Sergey Brin, who started Google in 1998, wanted the non-voting stock to prevent the possibility of their authority from being undermined as the company issues more shares to compensate employees and finance future acquisitions.

Thursday's approval was a foregone conclusion because Page and Brin already control more than 56 percent of the voting power at Google.

But Google Inc. doesn't expect the split to occur until late this year because of a shareholder lawsuit seeking to block the move.

Associated Press

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