NSW Commercial Law - What are the Rights of a Majority Shareholder?

[Deepak Walia]

I would like to know rights of a 51% shareholder in case of sale of business under Commercial Law

 

[Tim W]

As a 51% shareholder, the first right you have is to decide if the business is sold or not, and if so, for how much.
Can you tell us a bit more?

 

[Deepak Walia]

As a 51% shareholder, the first right you have is to decide if the business is sold or not, and if so, for how much.
Can you tell us a bit more?

Thanks for your reply Tim.

We are 3 partners with me being 51% shareholder in company. Company is setup with ordinary shares. Now other 2 partners are teaming up together and trying to push me out of the business. We were about to sell the business and now they are saying that they will not let me sell business

 

[Rod]

Being in a small company is like marriage, easy to get into, damn hard to get out of with all assets intact if the other party is not co-operative.

How many directors does the company have?
Goes your company have a constitution? If yes, what does it say about voting rights of members?
Do you have a shareholder agreement? If yes, what does it say about selling shares?

 

[Deepak Walia]

Being in a small company is like marriage, easy to get into, damn hard to get out of with all assets intact if the other party is not co-operative.

How many directors does the company have?
Goes your company have a constitution? If yes, what does it say about voting rights of members?
Do you have a shareholder agreement? If yes, what does it say about selling shares?

3 directors with me being 51%.

No constitution of company or agreement between shareholder. It was simple setup with ordinary shares.

 

[Rod]

Do you mean 3 directors, each with one vote. And you own 51% of the ordinary shares?

 

[Deepak Walia]

Do you mean 3 directors, each with one vote. And you own 51% of the ordinary shares?

I think so....yes