VC Circle - Indian Venture Capital, Private Equity, M :: Legal Guest Column: Understanding Shareholder Thresholds
The following are generally applicable to both public and private companies.
At 10% - the approval of at least 10% of the shareholders is required for the requisition of an Extraordinary General Meeting or for an application to the company Law Board for relief in the event of minority oppression or mismanagement of the company
At 26% - the approval of at least 75% of the shareholders (a special resolution) is required in order to inter alia:
- alter the Memorandum and Articles of the company
- change the name of the company
- repurchase the company’s shares
- change the registered office
- liquidate the company
At 51% - the approval of at least 50% of the shareholders (an ordinary resolution) is required in order to inter alia:
- alter/increase the share capital
- declaration of dividend
- to increase or reduce the number of directors
- to remove directors
- to appoint officers
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