disagreement between shareholders

disagreement between shareholders

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I normally have always obtained 100% sharholder agreement for voting.

When shareholders are not getting on:
- is 50% required to vote salary; and
- 75% required to vote a dividend?
Mart

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By User deleted
12th Jul 2006 18:15

Depending on memorandum of association
It depends on the memo of association but usually 50.1% is enough to pass any resolution provided of course that the interest of the minority is affected (whcih then they can apply to court to void the resolution etc).

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David Winch
By David Winch
12th Jul 2006 19:16

Ordinary, Extra-ordinary, Special & Elective Resolutions

Mart

An Ordinary Resolution can be passed by a simple majority.

Extra-ordinary and Special Resolutions require 75%.

Elective Resolutions require 100% of shareholders entitled to attend and vote (but once passed can be revoked by an Ordinary Resolution).

Copies of Extra-ordinary, Special and Elective Resolutions have to be filed at Companies House.

Voting of salaries and dividends could be accomplished by Ordinary Resolution, so a simple majority would be sufficient.

The other resolutions are required, for example, to change the company's name, to amend the Memorandum or Articles of Association, or to voluntarily wind up the company.

David

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By martinfoley07
12th Jul 2006 23:39

...agree....
....with David, Mart, and would add that you MUST read the specific company's Articles of Association before you reach ANY conclusions. These are the legal document governing these sorts of things, and can sometimes contain atypical clauses and surprises (nasty or otherwise) for the unwary or the unread.
It never ceases to astonish me how many folk fail to make a beeline for the Mem and Arts of the company concerned - it is vital. Assumming it is your company you are talking about, please immediately "dust off" the Articles and cold towel them.

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