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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.?

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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.

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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