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Quorum for shareholder

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Michelle Lai
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Quorum for shareholder

Postby Michelle Lai » Sat, 31 Oct 2015 6:16 pm

Dear all,

Memorandum and Article Of Association (MA) stated quoum for shareholder is 2 .

If there is DISAGREEMENT between 3 shareholder, (2 :1) based on shareholding of (100,50:150), can all the transaction passed via this 2 shareholder consent ?

Thanks

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Strong Eagle
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Re: Quorum for shareholder

Postby Strong Eagle » Sat, 31 Oct 2015 10:53 pm

That is a very poor way to set up shares because the answer is, "No", the transaction cannot pass because there is not a majority of shares voting in favor. As you know, it's not the number of shareholders, it's the number of shares.

I was a member of a 3 shareholder company under the same situation, same shares all around. We issued an additional two shares to a person we all trusted in the event we ever needed a tie breaker. We never did.

livingontheedge
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Re: Quorum for shareholder

Postby livingontheedge » Sun, 01 Nov 2015 4:25 pm

Nope. FYI certain resolutions require special resolution requiring more than a simple majority, ie 75% majority

Joe Joe sing
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Re: Quorum for shareholder

Postby Joe Joe sing » Sun, 01 Nov 2015 10:48 pm

Deadlocked. ...u can't. .... although you can win on a 'show of hands' , upon the demand of a poll, you two will be deadlocked. Any deadlock mechanism?

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Michelle Lai
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Re: Quorum for shareholder

Postby Michelle Lai » Mon, 02 Nov 2015 9:45 am

Joe Joe sing wrote:Deadlocked. ...u can't. .... although you can win on a 'show of hands' , upon the demand of a poll, you two will be deadlocked. Any deadlock mechanism?

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Sorry Joe,

Will be great that you can elaborate more about the quorum on show hand and quorum on paper meeting ? How can it passed on " show hand method "?

As mentioned by Mr Eagle, quorum is based on number of share, will the scenario be change if we able increase shareholding ( with the consent of all existing shareholder ) to become majority shareholding ?

But question now is how to define majority shareholding ? More than 1% ?

Joe Joe sing
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Re: Quorum for shareholder

Postby Joe Joe sing » Mon, 02 Nov 2015 9:55 am

If you look at the articles, it will typically say in the section on voting that voting will be by show of hands unless a poll is demanded. When a poll is demanded (and it is very unlikely you could say no to a poll) it is one vote for one share. Maybe it is easier for me to speak to you on this. Is there a number I could call you on?

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