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16th October 2009 at 6:20 pm
#391
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It is likely that the two shareholders would have to act together because otherwise the company would be deadlocked. Therefore in the absence of any funny share rights given to one and not the other you can assume here that the two shareholders are connected with the company especially in view of the provisions of s416 and 417 and see also Steele v EVC [1996] STC 785 but if you wish to put the matter beyond doubt have then enter into a short shareholders’ agreement confirming that they must act together to control the company.