ABC Corp. has three classes of common shares: Class A, Class B, and Class C. Class A shares carry voting rights, while Class B shares are non-voting but offer a higher dividend yield. Class C shares are convertible into Class A shares but have no dividends attached. In analyzing the trade-offs between these classes, an investor must consider factors like control, income preferences, and potential capital appreciation.
If an investor prioritizes maintaining their voting rights in corporate decisions and is willing to accept lower dividend income, which class of shares should they opt for?