As a rule, an ordinary shareholder decision requires shareholders to vote in favor of the matter with more than 50% of the company`s shares. In other words, if a single shareholder holds 75% of the shares in the company, the shareholder can make the decision himself. The shareholders` agreement should indicate whether the chairman has a decisive vote. If the chairman has a decisive vote and there is a deadlock (i.e. the shareholders with 50% of the shares are in favour of a deal and the shareholders with 50% of the shares are against), the chairman can use his decisive vote to adopt the case if he wishes. Provisions may be included in an agreement allowing one party to purchase the other party`s shares in the joint venture by reference to a predetermined price or a pre-established formula in the event of a freeze. If there are at least two shareholders in a company, shareholders must hold general meetings to vote on certain matters. The shareholder agreement contains the voting rights of the shareholders. Below, we present some popular resolution mechanisms that can be used when joint venture shareholders find themselves at an impasse. They can be classified in two ways: a president can get a decisive vote in a Deadlock scenario. This clause can reduce the number of issues that can lead to an impasse, while the power is effectively vested in the president. One of the advantages may be to give the president a vote on some issues, but not on others, which reduces the number of decisions that can be challenged.
However, this always means that a block can be created and an additional blocking clause is required. A special shareholder decision typically requires shareholders to vote in favor of a deal with at least 75% of the company`s shares. . . .