What if your server is hosting low quality sites or bad sites?

Selected answers from the Dumb SEO Questions Facebook & G+ community.

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  john matthew: hi Guys,
  
  if there is any written proof of Google theory available which says that you would get plenty because your server is also hosting low quality sites or bad sites?
  quick reply would be much appreciated !Thanks!
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  Aamir Siddiqui: Class c ip must be utilized and there should be unique ip for a single website means dedicated server.
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  john matthew: +Aamir Siddiqui ;hi Aamir i understand that ip must be unique from sites our links are coming(inbound links)  ;but my question is if i am hosting my website on shared server and is my external links would effect other sites hosted with me ? ;
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  Aamir Siddiqui: The other sites are your own or others and they will affect if content found duplicate and alike matters.
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  Andy Wigglesworth: Hi +john matthew ;
  
  Could you clarify - ;
  
  a) You run a server with your sites but also host some low quality sites?
  
  b) You are on a shared server with other peoples low quality sites?
  
  I  ;believe there is no such penalty as there are many shared hosts out there hosting thousands of websites on a single IP - as you can imagine, all of thousands of websites will be of different quality, purpose, some may be hacked, contain viruses and obviously these can change from day to day.
  
  There is also this video from +Matt Cutts ; - ;SEO Hosting Dedicated Vs Shared IPs - dollarseohosting.com
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  john matthew: +Andy Wigglesworth ;lovely piece of information Andy thanks a lot thats what i was looking for ! Great! Thanks again!