question about company formation and shareholders

[dragon]

My knowledge of company formations and shareholders etc is fuzzy at best, hope someone can enlighten me?

If a company is formed with 3 shareholders at say 50/25/25 would there be a way for the major shareholder to get rid of one or both of the 25% holders? Can these things be made up in contracts and agreed to etc before the company is set up?

Cheers!
Dragon

 

[acceleratoraccelerator is verified member.]

Not that I'm an expert, but I think an important concept here is having the majority vote, so if you owned 51% and the other two 24.5% each, I believe you would have enough voting power to carry any decision that required a vote as per the company articles.

Rgds

 

[Jeewhizz]

These things can be determined via a shareholders agreement. Vital to have in place IMO.

 

[WeTalkBuiness]

ok, I am not familiar with the shareholding concept but I think you can decide to get rid of one if you have the majority of the shares or buy the shares from that person. I don't know sorry... just blindly guess.

 

[dragon]

thanks chaps that pretty much answers what i was looking for

 

[aZooZaaZooZa is verified member.]

Essentially, the shareholders control the vote by percentages. But as Jeewhizz states, the shareholders' agreement is the crux of it.

 

[dashu1]

The shareholders own the company. You can't just get rid of one, you have to buy their shares in the company. You can also set voting rights so that having 51%+ doesn't necessarily mean total control.