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That's not enough. Under most corporate bylaws the board has the ultimate power. You could own 90% of the shares and still get fired.
by staunch 16y ago
That's not enough. Under most corporate bylaws the board has the ultimate power. You could own 90% of the shares and still get fired.
- deleted 16y ago[deleted]
- rglovejoy 16y agoBut if you own 90% of the shares, can't you just fire the board?
- diego 16y agohttp://en.wikipedia.org/wiki/Golden_share http://en.wikipedia.org/wiki/Golden_share
- staunch 16y agoMy understanding is that unless you have provision (in a shareholder's agreement for example) that gives you that power the answer is no. I believe that if you sued the company a judge would likely intervene on your behalf though.
- Umalu 16y agoUltimately the directors are always elected by the shares, and unless there is something really strange about the voting rights, someone owning a controlling interest in the shares should be able to control election to the board, which in turn would allow that person to control the board. Controlling the shares + controlling the board = controlling the company.
- staunch 16y agoThe shares do elect, but the owner of the shares can be required to vote a certain way. You could sell 90% of your shares and add a "ELECTION OF BOARD DIRECTORS" clause to the agreement. This is the same way drag along rights work.
- jamiequint 16y agodepends on the voting rights of the shares.
- Maro 16y agoIf you own 90% of the shares, you are the board.
- 3pt14159 16y agoWhile witty, this is incorrect.
- Umalu 16y agoIf you own 90% of the stock you should be able to remove or replace all the directors, and once you do that your new directors can rehire you. There may be a lag if the company's charter prohibits shareholders from acting by written consent or calling special meetings, but even if that were the case, anyone owning 90% should not be out in the cold for long.
- btilly 16y agoIt depends on the agreement. For instance you may retain the stock, but have explicit agreements where specific investors get to have a specified representation on the board. Then no matter how much stock you own, you can't get rid of those investors.