Entrepreneur’s Legal Battle with Payment Company Wise
The fintech entrepreneur Taavet Hinrikus, co-founder of the £10 billion payment company Wise, is embroiled in a legal dispute with the company. He has accused its current management of deceiving investors and warned that ongoing governance agreements could face challenges in court.
Controversy Over Governance Agreements
Hinrikus’s investment entity, Skaala, released a statement through Sky News criticizing Wise’s proposal to extend its dual-class stock structure. This structure has been in place for a decade and is currently under scrutiny as the company explores a listing in the United States.
Voting Rights Claims
Mr. Hinrikus expressed dissatisfaction with how the voting rights matter was integrated into a broader proposal concerning the U.S. listing. He deems this process as undemocratic and unfair to investors, calling it a tactic to obscure critical governance issues.
Misleading Proxy Advice Reports
The essence of the controversy stems from Wise’s claims regarding support from key proxy advisory firms. Skaala alleged that Wise inaccurately represented backing from ISS, Glass Lewis, and PIRC, which he argues misled shareholders.
Demand for Transparency
Hinrikus demanded that Wise issue a corrective announcement after learning about discrepancies in the proxy reports. Instead, the company responded with a quiet statement on its website, failing to inform the market adequately.
Legal Risks and Alternative Proposals
Skaala has highlighted significant legal risks associated with Wise’s current proposals. During a sanctions hearing scheduled for the second quarter of 2026, there is a potential for the court to reject the current governance structure due to procedural and transparency issues.
Company’s Response and Market Performance
In response, Wise stated that they had not received the critical reports from PIRC before they were publicly disclosed. Despite the turmoil, Wise’s shares have seen a rise of over 33% in the past year, currently boasting a market capitalization of £10.3 billion.
Conclusion: The Future of Governance at Wise
This unfolding legal battle between Skaala and Wise raises important questions about corporate governance and shareholder rights. The outcome of this dispute may have lasting implications not only for Wise but also for investor confidence in fintech governance structures.