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- How do you get shafted in a shareholder's agreement? Pretty simple, stick around, and I'll 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 you've got a shareholders agreement, you're signing up to it or you're 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 who's say in the minority, can get stitched up. What does that mean? I'll give you a basic example. Let's say you've got two shareholders, 60%, 40%. Let's say the shareholder's 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 there'll often be at list in the shareholder's agreement that says things like, salary amounts, taking...
