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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Am a director of a business and own 80%. Unfortunately my co

Resolved Question:

Am a director of a business and own 80%. Unfortunately my co director who owns 20% has equal voting rights. Can this be changed without his agreement. Any precedence?
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,

Do you have a shareholders agreement with this other director?
Customer: replied 2 years ago.

Yes

Expert:  UKSolicitorJA replied 2 years ago.
Thank you.

I am afraid if this person has equal voting rights to you, then their agreement is also required to change the voting rights as you would need 75% voting rights to change the Company's Articles of Association by passing a special resolution.

As you have a Shareholders Agreement with this person, I would suspect that his agreement is required to make any changes to the voting rights.

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Customer: replied 2 years ago.

I understand but this will mean stalemate. There must be a way around this and that's why I asked if there is any precedence in previous court cases.

Expert:  UKSolicitorJA replied 2 years ago.
Yes, there are ways around this if you are unable to agree on a mutually acceptable arrangement with this person.
The situation is known as a deadlock in law and you may need to go to court for appropriate orders regarding the administration of the company.
See here for further information
http://www.youblawg.com/law/company-deadlock-the-options
If you decide to go to court, you may wish to appoint a solicitor to act for you.
Hope this helps