What happens if the directors cannot reach agreement on a decision?

 

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5. What happens if the directors cannot reach agreement on a decision?

Rules on how decisions are taken should be included in the company's articles of association and/or shareholders' agreement.

In most cases, these state that motions are passed by the approval of a majority of the directors present at the meeting. They often also allow for the chairman to have a casting vote where the directors are split 50/50. They may also set out a minimum number of directors required to be present at a meeting ('quorum') for any decisions to be taken.