75% ownership - what's the big deal?

75% ownership - what's the big deal?

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I watched Dragons Den last night and the new lady said she wanted 26% of the shares as if the existing shareholders had 75% they had control, so she wanted to break that.

Call me naieve, but isn't 51% enough to dominate?  What is relevant about the extra 24%?

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By Ken Howard
08th Aug 2011 09:23

51%=Ordinary Resolution - 76%=Special Resolution

Ordinary resolutions are for the usual trading and recurring matters of a company, i.e. approving annual accounts, appointment of directors, change in shareholdings etc.

Special resolutions are for the "biggies" such as company name change, change in share capital, etc.

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Replying to Francois Badenhorst:
Quack
By Constantly Confused
08th Aug 2011 09:30

Ahhh

I see, so although 51% would be enough to dictate day to day decisions, the extra 24% is needed to effectively control everything.

Thanks!

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
10th Aug 2011 10:24

BusinessZone coverage

If you'd like more reaction and analysis on Sunday's episode, Adam Gore of find-me-a-gift.co.uk has written a round-up for our sister site, BusinessZone.co.uk

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