Google settles suit over founder control Google has moved a step closer to an overhaul of its capital structure that would effectively guarantee founders Larry Page and Sergey Brin lifetime control of the company. The search company has reached a settlement of a shareholder lawsuit that had delayed it making the changes, according to a regulatory filing on Monday. The settlement has been approved by Google's board, though it still needs court approval. The new capital structure, first outlined in April 2012, would involve Google issuing a new class of non-voting C shares to holders of its publicly traded common stock. Besides doubling the number of shares in issue, this would create a new class of stock that it could use for acquisitions or for compensating employees without risking diluting the voting control of Mr Page and Mr Brin, who currently have 58 per cent voting control between them. At the time it announced the plan, Google said its aim was to cement control of the company "for the very long term." Although the plan was approved in a shareholder vote, it was put on hold after a lawsuit was filed challenged the impact the plan would have on shareholders. Under the settlement reached at the weekend, Google has agreed to compensate shareholders if the C shares trade at a discount to its existing publicly traded stock, while also bowing to some restrictions on its ability to issue the new class of shares. Holders of the C shares will be compensated on a sliding scale depending on the size of the discount. Google's independent directors will have a say in the matter if the company wants to issue more than 10m C shares to make an acquisition - currently equivalent to around $4.4bn at the post-split price. Also, the search company has agreed to abandon the C class of shares entirely if Mr Brin and Mr Page's combined voting control falls below 15 per cent.