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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

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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?

Do you have a shareholders agreement with this other director?
Customer: replied 3 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 3 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.

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
If you decide to go to court, you may wish to appoint a solicitor to act for you.
Hope this helps