Control over a company

[itayshap]

Hello,

My question concerns control over a company with a majority of directors.

Assuming a buy to let company with 4 partners each has a 25% stake in the company.
Partner 1, 2 and 3 are directors in the company whereas partner 4 is not.

If partner 1+2 join forces, do they have legal right to control the company ?
For example, can they decide who will be the solicitor of the company or which property management agency to hire without the permission of the other partners?

Do they have any control whatsoever ?

Thank you,
Itay

[atticus]

This is subject to the company's articles of association and any shareholders agreement.

The directors manage the company. They may do so by majority decision.

[dslippy]

With three directors, two do have control over the decisions of the board who have day to day responsibility for management activities of the company. They vote individually, not according to their shareholdings.

Some decisions are taken by the shareholders at company meetings. There each member casts his votes according to the number of shares he holds, and accordingly the two directors do not have a majority.