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United Kingdom
section 371deadlock
Court of Appeal in Union Music Ltd v Watson
[2003] EWCA Civ 180
Key Principle
Under s.371 Companies Act 1985 (the predecessor of s.306 CA 2006) the court may order a meeting with a quorum of one to break a deadlock and allow a majority shareholder to exercise its voting power, and a clause requiring both shareholders to be present is a procedural quorum requirement rather than a substantive veto or class right that would preclude such an order.
Area of Law
General
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