Question

[Kosmos_]

Hi folks,
I've had this thought or rather question for a while now.

What is the point of you creating a company, it grows and does well, and you have a board directors who can simply vote you out ?
I know a board of directors is needed for a variety of reasons, however voting you out of your own company ? That doesn't sit well.

One day they can just decide to turn on you, and you can do nothing. All your blood, sweat and tears for nothing.

I'm not speaking about the CEO/chairman going off the rails. I'm really addressing betrayal by your closest work allies, especially right at the top.

Any thoughts ?
Thanks for reading.

 

[Speedster]

If you started the company surely you'd be the majority shareholder? And ideally greater than 50%. That way you'll always be the boss

 

[TheMightyQuin]

Hi folks,
I've had this thought or rather question for a while now.

What is the point of you creating a company, it grows and does well, and you have a board directors who can simply vote you out ?
I know a board of directors is needed for a variety of reasons, however voting you out of your own company ? That doesn't sit well.

One day they can just decide to turn on you, and you can do nothing. All your blood, sweat and tears for nothing.

I'm not speaking about the CEO/chairman going off the rails. I'm really addressing betrayal by your closest work allies, especially right at the top.

Any thoughts ?
Thanks for reading.

It is only and all about shareholding...not directorship or position on the board.

When you form a Pty and do not trade publicly and you keep the majority of the shares, you cannot be removed from your own company.

 

[Kosmos_]

Thanks to both of you. I will keep that in mind.

 

[A3@MBB]

When you form a Pty and do not trade publicly and you keep the majority of the shares, you cannot be removed from your own company.

You can if you are really stupid and not vote when and where it counts in your favour

 

[TheMightyQuin]

You can if you are really stupid and not vote when and where it counts in your favour

What??

How?

 

[A3@MBB]

What??

How?

Depending on the pty's MOI, the number and composition/appointment of directors is done by resolution of shareholders. You can vote yourself out if you want.

 

[Speedster]

Depending on the pty's MOI, the number and composition/appointment of directors is done by resolution of shareholders. You can vote yourself out if you want.

And then you can vote yourself straight back in again

 

[A3@MBB]

If you can call a valid meeting that is within the structure of MOI, yes

 

[TheMightyQuin]

Depending on the pty's MOI, the number and composition/appointment of directors is done by resolution of shareholders. You can vote yourself out if you want.

How is this at all relevant??

 

[A3@MBB]

How is this at all relevant??

Not relevant to OP I agree.

What??

How?

I replied to your inquiry, that is how it works isn't it?

 

[TheMightyQuin]

Not relevant to OP I agree.

I replied to your inquiry, that is how it works isn't it?

Fuk me...just another irrelevant Internet discussion...where with every response another thousand variables are dreamt up and thrown in the mix.

 

[kota]

So the moral of the story is to always ensure you have > 50% of the shares if the company is really important to you.