VIC Shareholders Controlling Interest in a Company?

Discussion in 'Commercial Law Forum' started by Shinzlet, 11 August 2018.

  1. Shinzlet

    Shinzlet Member

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    We own 15% of a company. One of the company directors has a 25% share of the company and his son owns a 5% share of the company. The director with 25% is currently unwell and it appears within the next 12 months will be deceased. Lawyers have advised a 30% share of the company is controlling interest in the business.

    Two questions:

    1. Is 30% controlling interest in the business? Is it dependent on the type of business corporation?
    2. Could other shareholders i.e. us with 15% and another holder with 25% amalgamate their interest to 40% and therefore have controlling interest? i.e. create a company together.

    Any help is highly appreciated.
     
  2. Rob Legat - SBPL

    LawTap Verified

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    Generally, any company is similar - if you control over 50% of the shares, you have a controlling interest. It relies on the ability to be able to control the outcome of voting on general motions. You don't have a controlling interest at 30% if the other 70% vote against you.
     
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