# kaal:claim:1998455-032

**Claim.** A contingent capital design that increases voting rights on conversion allows systemically important institutions to lower risk taking implicitly and to achieve an indirect, institution specific form of corporate governance reform through increased checks and balances.

**Type.** design  **Support.** argued

**Holds when.**

- where CCS are issued with a voting rights increase upon conversion
- issuance may be voluntary or mandatory

**Source quote.**

> With a design that increases voting rights, SI- FIs could implicitly lower risk-taking and allow for a form of in- direct and institution- specific corporate governance reform, i.e., increased checks and balances.

**From.** Wulf A. Kaal, *Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance* (2012), VII.C. Increased Voting Rights, page 46

**Cite as.** Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**Verify.** sha256 of source PDF `1c16ff10a284469ba15fb7ba5523449b917388ee692d9b394f9e8c094544e32c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Initial%20Reflections%20on%20the%20Possible%20Application%20of%20Contingent%20Capital%20in%20Corporate%20Governance.pdf

**Topics.** governance-design, contingent-capital, corporate-governance, risk-and-incentives

**Keywords.** voting-rights, contingent-capital, corporate-governance, checks-and-balances, risk-taking

**Related claims.**

- generalizes: https://wulfkaal.github.io/claims/2097160-011
- extends: https://wulfkaal.github.io/claims/1908473-006
- extends: https://wulfkaal.github.io/claims/1908473-029
- extended_by: https://wulfkaal.github.io/claims/2097160-040

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