The management team and the Board should act in the best interests of all Shareowners. However, if a Company has two classes of common shares (dual classes of common equity):
then the management team and the Board are more likely to focus on the interests of Class A Shareowners. The rights of Class B Shareowners may suffer as a consequence of the ownership structure.
The Company's ability to raise equity capital for future investment may also be impaired, as it's difficult to sell unattractive Class B shares to investors. To finance future growth the Company may need to raise debt capital and increase leverage.
If you are reviewing the Company, you should consider:
Preferred stock does not usually have voting rights. Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation. Concerns about ownership structure refer to issues regarding common shares.