Importance Of Unanimous Shareholders Agreement


1. Dispute resolution: it is possible to examine how to resolve blockages between shareholders. A common mechanism in a shareholders` agreement is to limit the dispute resolution procedure to mediation or binding arbitration, which is a much cheaper alternative to seeking reimbursement by the courts. As a rule, company law gives the majority shareholder(s), as decisions can usually be taken by a positive majority (i.e. 51%). In most jurisdictions, there are a limited number of exceptions that require what is known as a “special majority”, or two-thirds (or 66.67%) of the votes, to make decisions on the fundamental aspects of the business. However, when designing a shareholders` agreement, shareholders can decide what percentage is needed to make certain decisions. . . .

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