"Governance best practice is for the management board to only have one executive position to ensure their focus and to avoid conflicts of interest," Chan said.
He also noted a low proportion of independent directors at the company, which will remain heavily influenced by Volkswagen and its main shareholder, Porsche SE, the Porsche-Piech family holding company that has a majority stake in VW Group.
"While we try to engage with companies to improve their governance ... it’s difficult to see Porsche SE/VW/Porsche AG acquiescing to any of these moves to best practice (possibly separate CEOs, in time), so investors need to be mindful of them in deciding how much it affects the attractiveness of the shares for them," Chan said.
Gilles Guibout, head of European equity strategies at AXA Investment Managers in Paris, said he was concerned about the fact that only preference shares would be issued, which don't have voting rights.
"This means minority shareholders will have no rights," he said.
Andrea Scauri, senior portfolio manager at Volkswagen investor Lemanik Asset Management in Milan, also pointed to the small proportion of shares being offered as a potential deterrent.
"There will be so few shares on offer, I hardly think they are going to give shares to me."