HOW CAN A SHAREHOLDER OR A GROUP OF SHAREHOLDERS OWNING LESSTHAN 50% - ProProfs Discuss
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How can a shareholder or a group of shareholders owning lessthan 50% of voting shares control a corporation?



Asked by Easton, Last updated: Oct 16, 2021

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

Lets say one investor owns 35% of the voting shares, and no other investor ownsmore than 1% of the voting shares. the only way i can get outvoted is by a substantialportion of other shareholders banding together in a coordinated effort to vote againstme. this is unlikely. if im in control of the company, my management team hassolicited proxies from other voters. further to this, not everyone votes at a shareholdermeeting (just like in a political election, not everyone turns out to cast a vote). forthese reasons, its possible and not uncommon for someone with less than 50% ofvoting shares to control the direction of a company.
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