Can two direct relatives combine their company % holdings to overrule me?

Discussion in 'Commercial Law Forum' started by Lachlan james, 31 July 2019.

  1. Lachlan james

    Lachlan james Member

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    Party 1 and Party 2 each have 33.3%
    The relation is son and mother

    Party 3 would be myself and I’d hypothetically get 33.4%

    Now my question is; I want to know my current standing legally, say my power; especially over the board.

    In other words, I don’t want to be kicked off like Steve Jobs (albeit his was for other reasons) but primarily I don’t want to be kicked off or overturned on my suggestions / standing in the company IF they can combine their 33.3% each, totalling 66.6% due to being relatives and blood related.

    Is this possible? What power could they hold over me? Even though I would have 33.4%?

    It was originally the mother’s idea (they’re a business family) but the son wanted to take it on and swapped a business of his own for the Idea. I’m unsure if there was legal documents binding the IP of the idea or not, would that make a difference too?

    I just want to make sure they can’t combine they’re company holding percentages to overrule me in any way despite them being blood related And/or their original idea.

    I’m doing all the forecasting, projections, company name etc. even future endeavours etc.

    Party 1 & 2 are primarily the original idea makers and related, I could yes just run off with the idea myself but I have a loyalty with the son.

    They have extensive political, business companies and interests all around the world and it would be a great opportunity; considering a downsizing from my potential 100% to 33.4%

    A sacrifice I’m willing to make for potential future endeavours and leverage.

    So thoughts? It is in Australia but even your country law (Uk, US, wherever I am glad to hear how it works. I just cannot find the legislation on AUSTLI anywhere, nor the correct wording.

    Cheers
     
  2. Rod

    Rod Lawyer
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    You need proper legal advice and an agreement drawn up that protects your control of the business.

    Yes, shareholders can vote you out of the control of the business.

    Which State are you in?
     
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