Non-voting stock negativesQuestion What are negative issues with having two classes of stock -- voting and non-voting -- for a family business?
Answer Negatives issues associated with having a non-voting class of stock for those who are not responsible for the company's operations can arise if:
- Managers who own voting stock reduce dividends and provide no forum for clear information about the company's prospects. - Management is chosen from outside the family, and there is no structure in place to provide good information and sustain family control. 
Brain Trust contributor:
Family Business Psychologist and author of Your Family, Inc.
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