Fintech CEO faced accusations by a co-founder for alleged deception of investors, with estimates of the company's worth at £10 billion on the line.
In the latest development, Taavet Hinrikus, co-founder of financial technology company Wise, is locked in a dispute with the company over its proposal to extend the dual-class share structure for a decade, coinciding with a shift of its primary stock listing to the US. Hinrikus, through his investment vehicle Skaala, publicly opposes this move, citing concerns about transparency and fairness.
The crux of the issue revolves around the bundling of the extension of special voting rights with the US listing vote, which Hinrikus deems as undemocratic and lacking in regulatory transparency. Moreover, he alleges that Wise misled investors by claiming that all three major proxy advisory firms (ISS, Glass Lewis, and PIRC) unanimously supported the governance proposals, when in reality, PIRC actually recommended shareholders vote against them due to serious governance concerns.
The dispute is escalating towards court review, with Hinrikus’s group preparing legal action to challenge the fairness and transparency of the proposals. Despite these efforts, Wise appears poised to win a decisive victory in an upcoming extraordinary general meeting, as reports suggest only a minority of investors back Skaala’s attempt to prevent the extension of the dual-class voting structure.
Regarding transparency concerns, Hinrikus’s investment vehicle criticized Wise for failing to issue a corrective stock exchange announcement (RNS) after initially claiming that all three key proxy advisory firms endorsed its governance proposals. In reality, PIRC explicitly opposed the plan, a point Hinrikus says Wise downplayed or ignored, thereby misleading investors who heavily rely on professional proxy advisors’ recommendations.
Wise, with a market capitalization of £10.3bn, has been on an upward trajectory, with shares rising by more than a third in the last year. The company's chairman, David Wells, has claimed that Skaala's call to separate the extension of dual-class rights from the US listing misrepresents how a scheme of arrangement operates legally and in practice.
The row continues to be between Hinrikus and his co-founder, Kristo Kaarmann, who continues to run Wise. Any new scheme would face further delays and risk regulatory clearances being lost or needing to be reobtained if Wise only seeks to restructure the Scheme after a failed court sanction.
As the shareholder meeting approaches, the legal challenges loom large, with both parties gearing up for a potential court battle. The outcome of this dispute could have significant implications for the future governance and structure of Wise, as well as the broader financial technology industry.
References: [1] BBC News, "Wise co-founder in legal dispute with fintech firm over shares," 16 July 2025, https://www.bbc.co.uk/news/business-61660984 [2] Financial Times, "Wise co-founder challenges share structure move," 15 July 2025, https://www.ft.com/content/a511648e-414a-4841-a44a-4562d1a32d3c [3] City A.M., "Wise co-founder's legal challenge to share structure rejected by investors," 20 July 2025, https://www.cityam.com/finance/wise-co-founders-legal-challenge-to-share-structure-rejected-by-investors/ [4] The Guardian, "Wise co-founder accuses company of misleading investors over shares," 16 July 2025, https://www.theguardian.com/business/2025/jul/16/wise-co-founder-accuses-company-of-misleading-investors-over-shares
- The escalating legal dispute between Taavet Hinrikus and Wise revolves around concerns about transparency and fairness, particularly in relation to the extension of the dual-class share structure, the US listing, and the company's governance proposals.
- In the ongoing disagreement, Hinrikus's criticism of Wise includes allegations of misleading investors by claiming unanimous support from proxy advisory firms for the governance proposals, when in fact PIRC recommended against them due to serious governance concerns.
