Corporate

What should a shareholders’ agreement say about deadlock?

Starting point

Identify decisions that can stall the company, such as budget approval or funding. Define when a disagreement becomes a deadlock. Test that definition with a sample vote.

What to agree in practice

Agree the sequence: time for discussion, who leads escalation and the terms of a possible separation. Check whether the mechanism works when shareholders have unequal access to funds. Set out how day-to-day decisions continue in the meantime.

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