Can your decisions be overthrown if you own EXACTLY 50% of a company?

Question

i know 50%+1 share gives you control, but what if you minus the 1 extra share?

Answer 1

No, but you'll arrive at an impasse, a deadlock, and the co. will "hang", meaning it can't move on. This can happen in cases of bad disputes between 2 equal shareholders/directors and sometimes the only way to get out of this is to ask the Court to wind up the co. in which both sides lose.

Answer 2

The decisions should be made by the Board of Directors, not by the shareholders.

Shareholders have the right to approve or disapprove decisions by the board of directors at a shareholders meeting, but not to make day to day decisions. The shareholders may hold a special meeting as per state business law and the bylaws of the corporation.

The shareholders elect the board of directors also, and if there are only 2 directors, you could have the same issue between the directors. A director does not have to own stock, it depends on state law and the corporate bylaws. So you can have someone with zero ownership in corporation, running the corporation.

The best thing to do, is to work together for the best interests of the corporation. Whatever the issue is, ask yourself, what is in the best interests of the corporation. Present it that way.

Duties should be assinged., Joe is in charge of and has to approve all manufacturing decisions, Bill is marketing and is in charge of that, Martha is in charge of finance, and each person has the final say in their area of expertise.