Can you buy over a company 70% shares and control the company but 30% remains to third party that is unwilling to sell. Can you sack the 30% if he holds directorship or management position? Or it depends on company constitution because resolution can only be passed if full signatory?
Hi there,
You can buy over 70% shares of the company. If the owners of the 70% shares are willing to cooperate to sell their shares and sign the paperwork, you can buy this portion over. The shareholding agreement will be amended to reflect the new ownership.
You can’t sack the 30% as a shareholder since this is his ownership rights. As for the forced removal of his directorship, company’s shareholders may remove the director by ordinary resolution (i.e. more than 50% of votes in favour of removal), provided that there is no contrary provision in the constitution or Shareholder’s Agreement.
We elaborate more on the rights of shareholders and importance of a company’s constitution here https://www.paulhypepage.my/company-constitutions-in-malaysia/.
It is highly recommended to speak to our advisors for your decision making. WhatsApp us at +65 8483 3084.
Cheers,
Paul