Special Majority Shareholders Agreement

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A special majority shareholders agreement is a legal document that outlines the decision-making process for major decisions within a corporation. In essence, it is an agreement between the majority shareholders of a company that requires a specific percentage of votes in order to approve key actions.

This type of agreement is typically put in place to ensure that major decisions are not made without the input and agreement of the majority of shareholders. It can be used to safeguard against decisions that may not be in the best interest of the company as a whole, or to ensure that minority shareholders are not left out of important decisions.

The specific percentage required for approval varies depending on the agreement, but it is typically higher than a simple majority vote. For example, a special majority shareholders agreement may require that 75% of shareholders must agree in order to approve a major decision.

Some of the decisions that may be subject to a special majority shareholders agreement include mergers and acquisitions, significant changes to the company’s structure or operations, changes to the company’s articles of incorporation, and the sale or transfer of a significant portion of the company’s assets.

In addition to outlining the decision-making process, a special majority shareholders agreement may also include provisions for dispute resolution and the consequences for shareholders who do not comply with the agreement.

Overall, a special majority shareholders agreement can provide important protection for a company and its shareholders. If you are a shareholder in a corporation, it is important to review any agreements in place and ensure that your interests are being protected. If a special majority shareholders agreement is not in place, it may be worth considering implementing one to safeguard against the potential risks of major decisions being made without sufficient input and agreement from the majority of shareholders.