In general, decisions among shareholders - at, for example, a general meeting - are taken by a vote. In most cases, the vote is passed by a simple majority of those present at the meeting who vote. Some decisions require a higher majority: for example, a special resolution to change the company's articles of association requires a majority of 75 per cent of votes cast. Most disagreements between shareholders will eventually be resolved simply by voting power.
However, protection is also available in certain circumstances for minority shareholders where the majority shareholders are abusing their position.
One way in which disagreements can be circumvented is through shareholders' agreements (see question 2). These will often contain clauses detailing how the shareholders should act in certain circumstances. A carefully thought out shareholders' agreement can often help a company to run more smoothly, with fewer distractions or delays caused by shareholder disputes.
