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- How do you get shafted in a shareholders agreement? Pretty simple, stick around, and Ill tell you how. Hi, everyone, Simon here from The Contract Company, contracts, that what we do, all day, every day, and sometimes every night, lucky us. Righto, so youve got a shareholders agreement, youre signing up to it or youre in it. How can you be stitched up or shafted? Interesting. Simply this, the short answer is whoever controls the voting rights has the power to pass the votes they want. And if they can pass votes they want on the subjects that they want, then you, as the person whos say in the minority, can get stitched up. What does that mean? Ill give you a basic example. Lets say youve got two shareholders, 60%, 40%. Lets say the shareholders agreement sets out a whole list of things that need majority vote on, to pass. The majority vote being 50%. So what that means is therell often be at list in the shareholders agreement that says things like, salary amounts, taking