Shopify Inc. investors were divided on the e-commerce company’s proposal to entrench Chief Executive Officer Tobi Lutke’s voting power.

Just under 54 per cent voted in favor of creating a special “founder share” that guarantees Lutke at least 40 per cent of the voting rights at the company under certain conditions, according to a statement Wednesday from Shopify.

To pass, the proposal required the support of a majority of the votes cast by shareholders, excluding the shares Lutke controls, at Tuesday’s virtual annual meeting. 

Ahead of the meeting, shareholder advisory firms Glass Lewis & Co. and Institutional Shareholder Services Inc. recommended that investors reject the arrangement. The California Public Employees’ Retirement System had indicated it would vote against the proposal.

Shopify rose 2.4 per cent to US$389.98 as of 9:43 a.m. in New York.