- This topic has 3 replies, 2 voices, and was last updated 2 weeks ago by
.
- Posts
Hi Mike
If a person owns exactly 25% of a company’s shares or voting rights, do they have significant control?
Maybe!
If you held 25% of a company’s voting shares, do you think that you would have significant control?
Maybe!
But what if now I tell you that I hold the other 75%.
Now, do you have significant control?
You cannot prevent me from passing an ordinary resolution (because I have > 50%)
And you’re not even in the market place to stop me passing a special resolution! Because I have 75%
So, I ask again – do you have significant control?
But!!!! What if I am the second largest shareholder (after you and your 25%) and I now have only 0.01% of the voting shares? Yet again, same question – do you have significant control?
In answer therefore to your original question … maybe yes, maybe no.
OK?
- You must be logged in to reply to this topic.