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The move would create two voting classes for GM shareholders and eliminate a dividend for its common stock.

General Motors has rejected an investor petition calling for a significant change to the company's stock structure.

Hedge fund Greenlight Capital, managed by billionaire David Einhorn, apparently wants the company to split its stock into two different classes. One would keep a traditional dividend, while the other would lack a fixed dividend but receive GM's earnings in excess of dividends distributed to common shares.

Greenlight believes the dividend shares would have no negative impact on GM's credit rating and would unlock $12 billion to $36 billion in equity value, with little to no risk.

"After careful due diligence, including consultation with the rating agencies and independent analysis from three top-tier investment banks, the Board and management are confident that eliminating the dividend on the existing GM common stock and distributing the proposed new 'dividend security' creates an unacceptable level of risk and would not serve the best interests of GM shareholders," the automaker said in a statement.

The company warns that such a move could result in a lower credit rating, potentially having a $1 billion negative impact on GM Financial and put $1 billion in profit at risk.

"Elimination of the dividend on GM's existing common stock would likely lead to selling pressure by a significant universe of institutional owners and cause concern and confusion among retail holders, resulting in downward pressure on its share price," the statement added.

Greenlight, which holds nearly one percent of GM shares, has also nominated four candidates for the company's board od directors. In light of the structural disagreement, GM's current board has "unanimously determined not to recommend any of Greenlight's nominees for election."