KUALA LUMPUR: The shift of companies into unregulated spaces has reshaped the online platform landscape, leaving governance nearly nonexistent.
A key driver of this change is the end of Nasdaq's "one share, one vote" rule, which originally helped company founders maintain control despite private equity influence.
Corston-Smith founder Datuk Shireen Ann Zaharah Muhiudeen, a long-time advocate for corporate governance and environmental, social and governance (ESG) activism, warned that this lack of oversight had spread into Big Tech.
"These companies have moved into unregulated spaces with no governance at all," she said during the International Legal Conference on Online Harms here yesterday.
"Governance is often misused. From my experience, it truly means transparency in process, and that's what's failing us as a society."
Shireen, who launched her asset management company in 2004 to improve governance and sustainability standards, pointed to dual-class shares as a growing issue.
"Many companies can now list without following the 'one share, one vote' rule.
"This allows founders to retain control indefinitely, regardless of their actions. The usual transparency and governance controls don't apply," she said.
She added that outdated laws that haven't kept pace with the digital landscape were also of concern.
During a panel discussion with Professor Taylor Owen of McGill University and Frances Haugen, known as "The Facebook Whistleblower", Shireen talked about the unchecked power of global tech platforms.
She said Brazil's recent ban on X (formerly Twitter) after a legal clash with Supreme Court Justice Alexandre de Moraes, was a key example.
The platform had resisted Brazil's demand for a legally accountable representative within the country, claiming immunity from local regulations.
"These companies operate abroad, collect users and offer no local representation, making them untouchable.
"Do these platforms think they are beyond the reach of democratic governance? Clearly, the answer is yes."
The two-day event that ended yesterday was jointly organised by the Prime Minister's Department's Legal Affairs Division, the Communications Ministry, and the Malaysian Communications and Multimedia Commission.
It aimed to gather input on a proposed law to ensure online safety and address cyberbullying.
The conference was held in collaboration with Unicef, the UN Office on Drugs and Crime, the police, and the Human Rights Commission of Malaysia (Suhakam).