Articles of Association and Bylaws: rigidity versus flexibility
Posted: Wed Jan 22, 2025 7:59 am
There is a question that, reiterated throughout the 2024) , ends up getting many people stuck in their heads. In dozens of models of clauses or articles, we draw attention to the definition of the approval quorum, for this or that matter, as being a fine-tuning that must be worked out with attention to the situation experienced by the parties, that is, by the investors who become partners; ultimately, by the clients.
It seems to us that the excellence of the legal act lies precisely in demonstrating to those involved the impacts of such definitions, calling on them to meditate and, finally, define what the approval quorums bulk sms bahrain will be that will be set out in the articles of association or bylaws, as well as, eventually, in the partnership agreements. In general terms, four possibilities must be considered: unanimity, qualified quorum, absolute majority and simple majority.
Approval quorums
– Regarding the approval quorums – asks the diligent lawyer –, which ones do you want to stipulate for the company?
– What do you mean? – or something like that, the customers ask.
First of all, it is possible to foresee the need for unanimous approval: 100% of the voting capital. A risky step that must be carefully calculated: everyone will have to attend and approve. The corporate future (of the company and the society) is set in stone. If a minority shareholder does not approve, it will not be valid. In the abstract, it sounds beautiful: “we will all have to agree on everything.” It seems to be the gateway to a realm of harmony and mutual understanding. But life has its ups and downs and the agreement may not come to fruition.
It seems to us that the excellence of the legal act lies precisely in demonstrating to those involved the impacts of such definitions, calling on them to meditate and, finally, define what the approval quorums bulk sms bahrain will be that will be set out in the articles of association or bylaws, as well as, eventually, in the partnership agreements. In general terms, four possibilities must be considered: unanimity, qualified quorum, absolute majority and simple majority.
Approval quorums
– Regarding the approval quorums – asks the diligent lawyer –, which ones do you want to stipulate for the company?
– What do you mean? – or something like that, the customers ask.
First of all, it is possible to foresee the need for unanimous approval: 100% of the voting capital. A risky step that must be carefully calculated: everyone will have to attend and approve. The corporate future (of the company and the society) is set in stone. If a minority shareholder does not approve, it will not be valid. In the abstract, it sounds beautiful: “we will all have to agree on everything.” It seems to be the gateway to a realm of harmony and mutual understanding. But life has its ups and downs and the agreement may not come to fruition.