Power for shareholder holding 51% shareholding
SAHIL BANSAL (Student) (170 Points)
26 September 2012
what are powers of shareholder having 51% shareholding in Pvt co.?
3 Replies
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 27 September 2012
If only one person holds 51% shareholding then no resolution can be passed in General meeting without his consent.
The powers are vast so you pls be specific in your query.
Charu Srivastava
(Company Secretary)
(4210 Points)
Replied 27 September 2012
While the day-to-day management of the company is the responsibility of the company's board of directors, the shareholders may exert a significant indirect influence by exercising the rights and powers available to them. These include:
- passing resolutions at shareholder meetings
- voting out directors
- electing to sell their shares
- exercising minority buy-out rights (this is where dissenting shareholders require the company to buy their shares: the right can give significant protection to disaffected shareholders wanting to sell and preserve their capital)
- requesting the company in writing to provide information held by the company (with a right to appeal to the court if the company refuses)
- requiring the company to provide the shareholder with a statement of the shares that he or she holds, and of the various rights, privileges, conditions and limitations that attach to those shares
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