Legal Question in Business Law in Australia
Voting Rights
I am joining a 3 way Partnership that is a Pty Ltd company. It is agreed that it is equal 3rds in the ownership, however one of the partners wants 50% of the Voting Rights and myself and the other partner has 25% respectively. The reasoning is the relationship between myself and the other partner is quite close, and he see's this as an opportunity for us to out vote him every time. What could be the implications of this? and is it a normal practise?
Asked on 4/05/06, 5:09 am
1 Answer from Attorneys
Tim Wishart
McMahons National lawyers
Re: Voting Rights
its a situation fraught with danger.
if you are equal shareholders then the voting rights ought to be equal also.
a proper shareholders agreement will have dispute resolution and anti-deadlock clauses.
Answered on 4/05/06, 5:51 am
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