Responses off the top of my head would be, that a share register mostly held by a few majority shareholders could result in poor liquidity and also if it came to a shareholder vote, the result could be dominated by a few key majority shareholders which may not share the same view.
It's not a drawback if you hold the same view as a major shareholder (hard to tell though).
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- Q: Owned by too many major shareholders?
Q: Owned by too many major shareholders?, page-2
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