Loyalty and Multiple Voting Shares. Legal Developments in Italy

In this article, I examine the 2024 reform of Italian law on loyalty and multiple voting shares (LVS and MVS). After outlining the key changes introduced by the Legge Capitali — especially the tenfold increase in permitted voting rights—I analyse their potential to reverse the trend of corporate migration to jurisdictions with more flexible control-enhancing mechanisms. I then explore the practical, legal, and economic implications of the new regime, focusing on safeguards for minority shareholders, the right of withdrawal, and the impact on takeover law. Finally, I argue that while the reform strengthens control tools, further regulatory refinements are needed to ensure effective shareholder protection and market confidence.