Australia's #1 for Law

Join 11,000+ Australians. Ask a question, respond to a question and better understand the law today!

Dismiss Notice
Hi Guest, Want peace of mind with personalised legal advice today? Visit LawTap to find the right Australian lawyer and book online instantly.

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

Discussion in 'Commercial Law Forum' started by Deepak Walia, 3 May 2016.

  1. Deepak Walia

    Deepak Walia Member

    Joined:
    3 May 2016
    Messages:
    4
    Likes Received:
    0
    I would like to know rights of a 51% shareholder in case of sale of business under Commercial Law
     
  2. Tim W

    Tim W Lawyer
    LawTap Verified Lawyer

    Joined:
    28 April 2014
    Messages:
    1,925
    Likes Received:
    451
    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?
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Deepak Walia

    Deepak Walia Member

    Joined:
    3 May 2016
    Messages:
    4
    Likes Received:
    0
    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
     
  4. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,704
    Likes Received:
    358
    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?
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  5. Deepak Walia

    Deepak Walia Member

    Joined:
    3 May 2016
    Messages:
    4
    Likes Received:
    0
    3 directors with me being 51%.

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

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    2,704
    Likes Received:
    358
    Do you mean 3 directors, each with one vote. And you own 51% of the ordinary shares?
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  7. Deepak Walia

    Deepak Walia Member

    Joined:
    3 May 2016
    Messages:
    4
    Likes Received:
    0
    I think so....yes
     
Loading...

Share This Page

Loading...
gt;