Dissenting shareholder extraction

Dissenting shareholder extraction

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 Small Ltd co with 90 shareholders

One shareholder owns 8% or 234 shares but is overseas and no communication received over past decade

Is it possible to call an EGM to vote for all shareholders with precisely 234 shares to be bought back by the company?

Is this technically possible?

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By MBK
29th Jun 2011 13:17

Shares cannot be bought back without a contract

Which means the shareholder who is to be bought back has to consent.

A possible alternative is to form Newco to make an offer for the shares and use the 10% rule to acquire the 8% shareholding. But the 8% shareholder could thwart that by simply accepting the offer.

So - it looks a bit difficult to me.

 

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