Control by majority clause: Copy, customize, and use instantly

Introduction

A control by majority clause establishes the rights and power of the majority party to make decisions and take control over the organization or agreement. It typically applies to situations where decisions are made by a majority vote, and it ensures that the majority has the final say in matters that affect the direction and management of the agreement or entity.

Below are templates for control by majority clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Standard control by majority clause

This variation applies to general control by majority voting.

The control of [organization/entity] shall be vested in the majority shareholders or members, who will have the right to make decisions by a majority vote. Any decision requiring approval shall be passed if more than [X]% of the votes are in favor. The majority will have the authority to approve or reject proposals, amendments, and other significant actions.

Control by majority with veto power clause

This variation applies when the majority has veto power.

Decisions made by the majority shall control the direction of [organization/entity], except in cases where a veto is exercised by [specified minority or individual] holding [X]% or more of the voting power. The veto power ensures that no decision can be finalized without approval from the minority group, even if the majority votes in favor.

Control by majority with special rights clause

This variation applies when the majority holds special rights.

The majority shareholders, defined as those holding more than [X]% of the shares, will have the exclusive right to make decisions related to the strategic direction of the company, including mergers, acquisitions, or amendments to the corporate structure. Any decisions falling outside of this scope will require approval from [X]% of the remaining shareholders.

Control by majority with approval of major decisions clause

This variation applies when majority control requires approval for major decisions.

[Party Name] grants the majority shareholders or members the right to control day-to-day operations. However, any major decisions, such as changes in corporate governance, mergers, or significant financial decisions, will require the approval of at least [X]% of the voting shareholders or members.

Control by majority with equal voting clause

This variation applies when control by majority is determined by equal votes within the majority group.

[Party Name] ensures that decisions are controlled by the majority voting group, with each member within the majority group having an equal vote. Any decision requiring approval will pass if more than half of the majority group members vote in favor, regardless of the individual stake held by each member.

Control by majority with reserved powers clause

This variation applies when certain powers are reserved to the majority.

The majority, defined as [X]% of voting shares, shall have exclusive control over decisions related to [specific powers, e.g., amending the bylaws, approving capital expenditures, or appointing executives]. Other decisions may require a simple majority vote or consensus but will be subject to the approval of the reserved powers holders.

Control by majority with thresholds for decision-making clause

This variation applies when specific thresholds are set for decision-making.

[Party Name] agrees that decisions requiring approval by the majority, including [specific decisions], will only be valid if approved by [X]% of the voting members or shareholders. Decisions failing to meet this threshold will not be deemed ratified, even if the majority of members approve the action.

Control by majority with voting rights clause

This variation applies when majority control is tied to voting rights.

Control of [organization/entity] is vested in those holding the majority of voting rights. Any vote requiring approval must be passed by [X]% of the voting rights, with each share or member unit carrying the right to one vote, regardless of the shareholder’s or member’s stake in the entity.

Control by majority with supermajority clause

This variation applies when majority control requires a supermajority vote.

In situations where a supermajority is required, [Party Name] agrees that decisions regarding [specific actions, such as amendments, mergers, or major changes] will only be approved if more than [X]% of the voting members or shareholders are in favor. This ensures that any major decisions have broad consensus within the majority group.

Control by majority with ownership requirements clause

This variation applies when majority control requires a specific ownership threshold.

Control of [organization/entity] will be vested in the majority shareholders or members who own at least [X]% of the total ownership. The majority group will have the exclusive right to make decisions concerning the management, strategy, and operations of the entity, subject to the ownership threshold being met.

Control by majority with appointment power clause

This variation applies when the majority has control over appointments.

The majority shareholders or members, holding [X]% of the voting rights, will have the exclusive authority to appoint key personnel, including the CEO, CFO, and board members. This ensures that leadership decisions are in line with the majority’s interests and objectives.

Control by majority with dispute resolution clause

This variation applies when the majority controls the dispute resolution process.

In the event of a dispute, the majority shareholders or members, holding [X]% of the voting rights, shall have the authority to resolve the dispute. This includes the power to decide on the choice of arbitrators, mediation processes, and the final decision-making mechanism.

Control by majority with shareholder approval clause

This variation applies when majority control requires shareholder approval for certain actions.

The majority shareholders, holding [X]% or more of the voting shares, shall have the power to approve or reject any major corporate decisions, including mergers, acquisitions, or changes in the company’s business model. No decision will be finalized without the approval of this majority group.

Control by majority with governing body clause

This variation applies when the majority governs through a specific body.

The control of [organization/entity] shall be managed by a governing body consisting of the majority members, holding [X]% of the total votes. This governing body will have the final say in all decisions, including operational and strategic matters.

Control by majority with operational control clause

This variation applies when majority control includes operational decisions.

[Party Name] agrees that the majority stakeholders, holding at least [X]% of the total shares or voting units, shall have full operational control of the entity. This includes decision-making authority over daily operations, resource allocation, and implementation of the strategic plan.

Control by majority with executive oversight clause

This variation applies when majority control extends to executive oversight.

The majority stakeholders of [organization/entity], who own at least [X]% of the shares, shall oversee executive appointments, performance evaluations, and compensation decisions. This ensures that the majority’s interests are represented in the leadership of the entity.

Control by majority with shareholder proposal clause

This variation applies when shareholders with a majority can propose changes.

Shareholders or members holding a majority interest, defined as [X]% of the total shares or votes, shall have the right to propose changes to the bylaws, corporate strategy, or other fundamental aspects of the organization. Such proposals will be submitted to the governing body for approval.

Control by majority with amendment authority clause

This variation applies when majority control is needed to amend terms.

[Party Name] agrees that any amendments to this agreement or the governing documents of [organization/entity] shall require the approval of the majority, holding at least [X]% of the shares or votes. Any changes that do not meet this threshold will be invalid.

Control by majority with financial decisions clause

This variation applies when the majority controls financial decisions.

Control over all financial decisions, including budgeting, capital expenditure, and financial strategy, shall be vested in the majority group holding at least [X]% of the voting rights. Any significant financial changes must be approved by the majority before implementation.

Control by majority with emergency decision-making clause

This variation applies when majority control is exercised in emergencies.

In the event of an emergency or unforeseen circumstance, [Party Name] grants the majority stakeholders holding [X]% of the voting power the right to make immediate decisions affecting the operations or governance of the entity. These decisions will be reviewed and ratified in the next official meeting.

Control by majority with voting threshold clause

This variation applies when majority control requires a specific voting threshold.

Any decision requiring approval from the majority shall pass only if it receives the affirmative vote of at least [X]% of the total voting units, shares, or members. This voting threshold ensures that a broad consensus is required for major decisions.

Control by majority with organizational restructuring clause

This variation applies when majority control includes organizational restructuring.

[Party Name] agrees that any decision regarding organizational restructuring, including changes to departments, functions, or key leadership positions, will require the approval of the majority holding [X]% of the total voting rights. These decisions will be made in consultation with all relevant parties but will ultimately be determined by the majority vote.

Control by majority with executive compensation clause

This variation applies when majority control involves setting executive compensation.

The compensation for executive roles, including but not limited to the CEO and CFO, will be determined by the majority group, who hold at least [X]% of the voting shares. The compensation decisions will be reviewed annually to ensure alignment with the goals and financial standing of the organization.

Control by majority with limited veto power clause

This variation applies when majority control includes limited veto power for minority shareholders.

[Party Name] agrees that the majority shareholders, holding [X]% of the shares, will control all major decisions. However, minority shareholders holding at least [Y]% may exercise veto power on matters concerning [specific issues, e.g., mergers or executive appointments], requiring a supermajority to proceed.

Control by majority with appointment of key officers clause

This variation applies when majority control includes appointing key officers.

The majority shareholders, owning [X]% of the shares, will have the authority to appoint the CEO, CFO, and other key officers. These appointments must be confirmed by a [X]% majority of the board to ensure leadership alignment with majority interests.

Control by majority with financial reporting approval clause

This variation applies when majority control involves approval of financial reports.

The majority shareholders, holding at least [X]% of the voting rights, will have exclusive control over the approval of annual financial reports and strategic financial decisions. The board will present these reports to the majority for approval before distribution to all stakeholders.

Control by majority with voting rights allocation clause

This variation applies when majority control is tied to voting rights allocation.

Control over [organization/entity] shall be determined by the voting rights allocated to each party. The majority group, holding at least [X]% of the total voting rights, will have the final say on all decisions requiring a vote, including decisions related to the sale of assets, capital expenditures, and operational direction.

Control by majority with operational changes clause

This variation applies when majority control extends to making operational changes.

[Party Name] grants the majority shareholders, holding [X]% or more of the voting shares, the power to implement and oversee operational changes, including adjustments to business strategy, resource allocation, and internal processes, subject to the majority's approval.

Control by majority with specific decision-making areas clause

This variation applies when majority control covers specific decision-making areas.

The majority group, holding [X]% of the total voting shares, will have control over decisions related to [specific decision areas, e.g., intellectual property, major investments, or international expansion]. All decisions in these areas require a majority vote and cannot be overridden without this consent.

Control by majority with shareholder agreement clause

This variation applies when majority control requires shareholder agreement.

[Party Name] agrees that decisions regarding [specified matters] will require the agreement of the majority of shareholders. The majority group, holding at least [X]% of the shares, will have the final say on all proposed decisions, ensuring that shareholder interests are represented.

Control by majority with executive decision-making clause

This variation applies when majority control includes executive decision-making authority.

The majority, defined as shareholders holding [X]% of voting power, will retain exclusive authority over executive-level decisions, including hiring or firing key executives and setting executive compensation. This authority allows the majority to shape leadership in alignment with organizational goals.

Control by majority with special decision-making process clause

This variation applies when majority control includes a special decision-making process.

For critical decisions, including amendments to corporate bylaws or capital changes, [Party Name] requires approval by a special majority vote. A decision will be deemed approved if [X]% of the majority voting bloc consents, ensuring significant decisions have broad support.

Control by majority with strategic direction clause

This variation applies when majority control involves setting the strategic direction.

The majority shareholders, holding at least [X]% of the voting rights, will control the strategic direction of the company, including approving long-term goals, market expansion plans, and significant investments. This ensures that strategic decisions reflect the priorities of the majority.

Control by majority with appointment of board members clause

This variation applies when majority control includes the appointment of board members.

The majority of shareholders, owning at least [X]% of the voting rights, will have the authority to appoint members to the board of directors. The board will operate under the guidance of the majority’s strategic direction, and all board appointments will require the approval of the majority group.

Control by majority with operational strategy clause

This variation applies when majority control includes the operational strategy.

[Party Name] agrees that the operational strategy of the company will be governed by the majority group, holding [X]% or more of the voting rights. Any major operational decisions, such as product launches or market entry strategies, will require the approval of the majority voting block.

Control by majority with dispute resolution authority clause

This variation applies when majority control extends to dispute resolution authority.

In the event of a dispute between shareholders, the majority group, holding [X]% of the voting rights, will have the authority to determine the method of dispute resolution, including selecting arbitrators or mediators. Their decision will be binding on all parties involved.

Control by majority with change of control clause

This variation applies when majority control affects a change in control.

Any change in control of [organization/entity], including mergers, acquisitions, or other substantial changes to ownership, must be approved by the majority shareholders, defined as those holding [X]% of the voting rights. Any proposed transaction without majority approval will be considered invalid.

Control by majority with temporary decision-making powers clause

This variation applies when majority control includes temporary decision-making powers.

During a period of emergency or crisis, the majority shareholders, defined as [X]% of the voting shares, will have the authority to make immediate decisions affecting the operations and direction of the organization, subject to review and approval at the next scheduled meeting.

Control by majority with executive veto clause

This variation applies when majority control includes an executive veto power.

The majority of shareholders, holding [X]% or more of the voting rights, will have the right to veto decisions made by the board of directors or executives. Any decision that does not align with the majority’s interests can be blocked, ensuring that major decisions reflect the majority’s priorities.

Control by majority with financial authority clause

This variation applies when majority control includes financial decision-making authority.

The majority shareholders, owning [X]% of the company’s shares, will have full control over major financial decisions, including capital investments, debt financing, and the allocation of company resources. All such decisions must be approved by the majority to ensure alignment with overall financial strategy.

Control by majority with voting adjustments clause

This variation applies when majority control involves adjustments to voting rights.

[Party Name] agrees that, for specific decisions requiring a supermajority vote, voting rights will be adjusted based on the significance of the decision. The majority group, holding [X]% of votes, will control decisions requiring more than a simple majority, such as mergers or acquisitions.

Control by majority with limited executive decisions clause

This variation applies when majority control limits executive decision-making.

The board of directors will retain executive decision-making authority, but the majority of shareholders holding [X]% or more of the voting rights will have the final say on major decisions, including changes to business models, executive compensation, and shareholder agreements.

Control by majority with performance-based control clause

This variation applies when majority control is tied to performance metrics.

[Party Name] agrees that the control of [organization/entity] will be determined by the majority group, which holds [X]% of voting rights, but such control is conditional upon meeting specified performance metrics. If these targets are not met, the control may revert to the minority group or an alternate arrangement.

Control by majority with ongoing voting rights clause

This variation applies when majority control includes ongoing voting rights.

[Party Name] will maintain control through the majority voting group, whose voting rights will remain in effect throughout the term of the agreement. All major decisions affecting the organization’s direction, including new investments or significant structural changes, will require the ongoing approval of this group.

Control by majority with emergency governance clause

This variation applies when majority control involves emergency governance.

In times of crisis or unforeseen events, the majority group, holding [X]% of the voting shares, will assume full governance over the organization. They will have the exclusive right to make decisions necessary for the survival and protection of the organization, including financial decisions and leadership changes.

Control by majority with shareholder approval for changes clause

This variation applies when majority control requires shareholder approval for changes.

Any proposed changes to the structure, bylaws, or operations of the organization must be approved by the majority shareholders, defined as those holding [X]% of voting rights. The majority approval is required for changes that affect shareholder interests, operational strategies, or business direction.

Control by majority with decision delegation clause

This variation applies when the majority delegates certain decisions.

The majority shareholders, holding at least [X]% of the shares, will have the power to delegate decision-making authority to a specified committee or individual. This delegation can cover areas such as strategy formulation, hiring, or investments but is subject to ongoing approval from the majority group.

Control by majority with policy-making power clause

This variation applies when majority control includes policy-making authority.

[Party Name] grants the majority group, holding [X]% or more of the shares, full authority to establish and enforce company policies. These policies will govern all operations, including HR practices, marketing strategies, and operational guidelines, and must be adhered to by all parties.

Control by majority with joint approval clause

This variation applies when decisions require joint approval from the majority and another party.

[Party Name] agrees that for certain decisions, including [specified decisions], both the majority voting group and [another specified group, e.g., executive team] must jointly approve the decision. This ensures balanced decision-making between shareholders and management.

Control by majority with liquidation authority clause

This variation applies when majority control includes authority over liquidation.

The majority shareholders, holding [X]% of the total shares, will have the exclusive authority to approve any decision related to the liquidation of the company. No liquidation process can proceed without their approval, which must be achieved through a majority vote.

Control by majority with strategic investment clause

This variation applies when majority control involves decisions regarding strategic investments.

The majority shareholders, holding at least [X]% of the voting rights, will have full control over decisions related to strategic investments and acquisitions. These decisions must be approved by the majority group before any significant investments or acquisitions are made.

Control by majority with business model approval clause

This variation applies when majority control includes the approval of the business model.

[Party Name] grants the majority of shareholders, holding [X]% or more of the voting shares, the exclusive right to approve any changes to the organization’s business model. Any shift in the company's approach to products, services, or target markets requires their approval.

Control by majority with operational budget clause

This variation applies when majority control involves approval of the operational budget.

The operational budget of [organization/entity] shall be approved by the majority shareholders, who hold at least [X]% of the shares. No significant financial allocation, including operating costs or capital expenditures, can proceed without the approval of the majority group.

Control by majority with hiring of executives clause

This variation applies when majority control includes hiring and firing of executives.

The majority group, holding [X]% of the voting shares, will control the appointment and termination of key executives, including the CEO and CFO. No executive-level hire or dismissal will occur without the express approval of the majority group.

Control by majority with approval of dividends clause

This variation applies when majority control includes decisions on dividends.

The declaration of dividends will be subject to the approval of the majority shareholders, who hold [X]% or more of the voting shares. The majority group will determine the amount, timing, and eligibility of dividends paid to shareholders.

Control by majority with emergency decision-making clause

This variation applies when majority control includes decision-making during emergencies.

In times of crisis or emergency, the majority shareholders, holding [X]% of the voting shares, will have the sole authority to make critical decisions affecting the business, including financial commitments, changes to operations, or restructuring efforts.

Control by majority with board seat appointments clause

This variation applies when majority control includes board seat appointments.

The majority shareholders, owning [X]% or more of the voting shares, will have the right to appoint members to the board of directors. Board members appointed by the majority will have voting power on all key decisions made by the board.

Control by majority with mergers and acquisitions clause

This variation applies when majority control governs mergers and acquisitions.

Any proposed merger, acquisition, or sale of assets must be approved by the majority shareholders, holding [X]% of the voting rights. No such transaction will proceed without their consent, ensuring the majority’s control over ownership changes.

Control by majority with employee stock options clause

This variation applies when majority control includes decisions regarding employee stock options.

The majority shareholders, holding [X]% of the shares, will have control over the issuance and terms of employee stock options. Any new issuance or modification to existing options will require their approval.

Control by majority with distribution of profits clause

This variation applies when majority control includes decisions regarding profit distribution.

The distribution of profits, including bonuses or additional payments to shareholders, will require the approval of the majority group, defined as shareholders holding at least [X]% of the voting rights. The distribution must align with the majority’s financial strategy.

Control by majority with strategic plan approval clause

This variation applies when majority control is needed to approve the strategic plan.

[Party Name] agrees that any strategic plan, including long-term goals, market positioning, or organizational changes, must be approved by the majority shareholders, holding [X]% or more of the voting shares. The strategic plan will be subject to annual review and approval by the majority group.

Control by majority with voting on capital raising clause

This variation applies when majority control is required for capital raising decisions.

Any decision to raise capital, whether through debt, equity, or other financial instruments, must be approved by the majority shareholders, who hold [X]% of the total voting rights. This ensures that the majority group has control over the organization’s financial structure.

Control by majority with partnership and joint venture approval clause

This variation applies when majority control includes decisions on partnerships and joint ventures.

The majority shareholders, holding [X]% of the voting shares, will have the exclusive right to approve any partnerships or joint ventures entered into by the company. This includes decisions on the strategic alignment and terms of such partnerships.

Control by majority with financial audit authority clause

This variation applies when majority control includes the authority to approve financial audits.

The majority shareholders, holding [X]% or more of the voting shares, will control the selection of auditors and approval of financial audits. They will have the right to review and accept the final audited financial statements presented by the auditing firm.

Control by majority with intellectual property rights clause

This variation applies when majority control includes decisions on intellectual property.

The majority shareholders, holding [X]% of the total voting shares, will have the authority to manage and make decisions regarding the intellectual property portfolio of the company, including patents, trademarks, and licensing agreements.

Control by majority with shareholder rights clause

This variation applies when majority control includes determining shareholder rights.

The majority shareholders will have control over the rights granted to other shareholders, including voting rights, dividend entitlements, and other participation in the company's governance. Any changes to shareholder rights will require majority approval.

Control by majority with executive performance evaluation clause

This variation applies when majority control includes overseeing executive performance.

The majority group, holding [X]% or more of the shares, will conduct an annual performance review of the company’s executives. Their review will determine continued executive contracts, performance bonuses, and any potential changes in leadership.

Control by majority with company structure changes clause

This variation applies when majority control includes changes to company structure.

Any proposed changes to the company structure, including reorganizations, dissolutions, or reclassifications of shares, must be approved by the majority shareholders, holding at least [X]% of the voting rights.

Control by majority with operational guideline approval clause

This variation applies when majority control includes operational guidelines.

[Party Name] agrees that the majority shareholders will have the final say on the approval of operational guidelines. This includes the establishment of key performance metrics, budget allocations, and any strategic shifts required for day-to-day operations.

Control by majority with technology investment approval clause

This variation applies when majority control governs technology investments.

Decisions on investments in technology or research and development initiatives must be approved by the majority shareholders, who hold [X]% of the voting shares. The majority group will ensure that technology investments align with the company’s long-term strategic objectives.

Control by majority with approval for employee benefits clause

This variation applies when majority control includes employee benefits decisions.

The majority shareholders, holding [X]% of the voting rights, will have control over employee benefit programs, including health insurance, retirement plans, and other compensation structures. Any changes to employee benefits will require majority approval.

Control by majority with financial restructuring clause

This variation applies when majority control governs financial restructuring decisions.

[Party Name] agrees that any decision regarding financial restructuring, including debt refinancing or recapitalization, must be approved by the majority shareholders, holding at least [X]% of the total voting shares. This ensures that major financial changes align with the majority’s objectives.

Control by majority with termination of agreement clause

This variation applies when majority control includes termination of the agreement.

The majority shareholders, owning [X]% of the total shares or voting rights, will have the authority to terminate this agreement. Any termination must be approved by the majority group, with written notice given to all other parties involved.

Control by majority with dividend reinvestment program approval clause

This variation applies when majority control includes decisions regarding dividend reinvestment programs.

[Party Name] agrees that any proposed dividend reinvestment program will require the approval of the majority shareholders, holding at least [X]% of the total voting shares. This ensures that dividend reinvestment aligns with the majority’s financial strategies and goals.

Control by majority with change of leadership clause

This variation applies when majority control governs leadership changes.

[Party Name] agrees that any changes to the leadership team, including the removal or appointment of key executives, will require approval from the majority shareholders, holding [X]% or more of the voting shares. This ensures that the leadership remains aligned with majority shareholder interests.

Control by majority with amendment of articles clause

This variation applies when majority control includes amending the articles of incorporation.

The majority shareholders, holding at least [X]% of the voting shares, will have the exclusive right to amend the articles of incorporation of [organization/entity]. Any proposed amendments must be approved by the majority before they can be implemented.

Control by majority with approval of executive compensation clause

This variation applies when majority control includes decisions on executive compensation.

[Party Name] agrees that the majority shareholders, holding at least [X]% of the voting rights, will have the authority to approve executive compensation packages, including base salary, bonuses, stock options, and other benefits for senior executives.

Control by majority with shareholder dispute resolution clause

This variation applies when majority control governs dispute resolution among shareholders.

In the event of a dispute between shareholders, the majority group, holding [X]% of the voting shares, will have the authority to determine the dispute resolution process, including mediation, arbitration, or legal proceedings.

Control by majority with investment strategy approval clause

This variation applies when majority control includes decisions on investment strategies.

[Party Name] agrees that the majority shareholders, holding at least [X]% of the voting shares, will approve the company’s investment strategy, including the allocation of funds for short-term and long-term investments, mergers, acquisitions, and new business ventures.

Control by majority with executive performance targets clause

This variation applies when majority control involves setting performance targets for executives.

The majority shareholders, holding [X]% of the voting rights, will establish annual performance targets for the CEO and other top executives. These targets will be tied to financial and operational objectives and will determine executive bonuses or salary increases.

Control by majority with voting on capital structure changes clause

This variation applies when majority control governs changes to the capital structure.

Any changes to the capital structure, such as issuing additional shares, changing stock classes, or adjusting debt levels, will require approval from the majority shareholders, holding [X]% or more of the voting shares.

Control by majority with stakeholder consultation clause

This variation applies when majority control includes the need for stakeholder consultation.

Before making any significant corporate decisions, the majority shareholders, holding [X]% or more of the voting rights, will consult with other stakeholders, including employees, customers, and key investors, to ensure their interests are considered.

Control by majority with corporate policy changes clause

This variation applies when majority control includes changes to corporate policies.

[Party Name] agrees that changes to corporate policies, including employee conduct guidelines, environmental standards, and workplace practices, will require the approval of the majority shareholders, holding at least [X]% of the voting shares.

Control by majority with approval of auditor appointment clause

This variation applies when majority control governs the appointment of auditors.

The majority shareholders, holding [X]% or more of the voting rights, will have the authority to approve the appointment of independent auditors, who will conduct the organization’s financial audits on an annual basis.

Control by majority with operational restructuring clause

This variation applies when majority control includes operational restructuring decisions.

[Party Name] agrees that any decision regarding operational restructuring, including changes to business units, workforce reductions, or shifting the focus of operations, must be approved by the majority shareholders, holding [X]% of the total voting rights.

Control by majority with business sale approval clause

This variation applies when majority control includes the sale of the business.

The majority shareholders, holding at least [X]% of the voting shares, must approve any sale of the company or its assets. No sale or transfer of business ownership will occur without the approval of this majority group.

Control by majority with appointment of legal counsel clause

This variation applies when majority control includes the selection of legal counsel.

[Party Name] agrees that the majority shareholders, holding [X]% or more of the voting rights, will have the power to select and appoint legal counsel to represent the company in any litigation, regulatory matters, or legal advisory services.

Control by majority with control over financing decisions clause

This variation applies when majority control includes decisions on financing.

The majority shareholders, holding [X]% or more of the voting shares, will have control over all decisions related to raising capital, including issuing bonds, taking loans, and selling equity in the company.

Control by majority with decision-making on employee benefits clause

This variation applies when majority control includes decisions on employee benefits.

The majority shareholders, holding at least [X]% of the voting rights, will have the authority to determine employee benefit programs, including health insurance, retirement plans, and other fringe benefits, ensuring these align with the organization’s financial health.

Control by majority with non-compete agreement enforcement clause

This variation applies when majority control includes enforcement of non-compete clauses.

[Party Name] agrees that the majority shareholders, holding [X]% or more of the voting shares, will have the right to enforce non-compete agreements with senior employees or executives. The majority can approve or amend these agreements as needed to protect business interests.

Control by majority with tax strategy decisions clause

This variation applies when majority control governs tax strategy decisions.

[Party Name] agrees that the majority shareholders, holding [X]% or more of the voting rights, will control the company’s tax strategy, including decisions related to tax planning, compliance, and structuring of transactions to minimize tax liabilities.

Control by majority with dividend policy clause

This variation applies when majority control governs the dividend policy.

The majority shareholders, holding at least [X]% of the voting shares, will have the authority to set the company’s dividend policy, including the frequency, amount, and eligibility criteria for dividend payments.

Control by majority with financial oversight clause

This variation applies when majority control includes financial oversight.

The majority group, holding [X]% or more of the voting rights, will have the power to oversee and approve the financial activities of the organization, including budget approval, capital expenditures, and financial audits.

Control by majority with key partnership approvals clause

This variation applies when majority control governs key partnerships.

[Party Name] agrees that any key partnerships, joint ventures, or alliances with external parties must be approved by the majority shareholders, holding [X]% of the voting shares. This ensures that the majority controls strategic business relationships.

Control by majority with marketing strategy approval clause

This variation applies when majority control governs marketing strategies.

The majority shareholders, holding [X]% or more of the voting shares, will control the approval of marketing strategies and campaigns, including decisions on advertising, branding, and product positioning.

Control by majority with amendments to shareholder rights clause

This variation applies when majority control includes amendments to shareholder rights.

Any proposed changes to the rights of shareholders, including voting rights, dividend distribution, or stock conversion rights, must be approved by the majority shareholders, holding at least [X]% of the total voting shares.

Control by majority with legal compliance responsibility clause

This variation applies when majority control governs legal compliance.

The majority shareholders, holding [X]% of the voting rights, will have primary responsibility for ensuring that the company complies with all relevant local, state, and federal regulations. This includes overseeing regulatory filings, compliance with industry standards, and internal audits.

Control by majority with policy development clause

This variation applies when majority control governs policy development.

[Party Name] agrees that the majority shareholders, holding at least [X]% of the total shares, will control the development and implementation of internal policies, including ethics, workplace conduct, and social responsibility guidelines.

Control by majority with allocation of resources clause

This variation applies when majority control includes resource allocation decisions.

The majority shareholders, holding [X]% or more of the voting shares, will have the exclusive right to allocate resources, including capital, staff, and technology, across the company’s operations, ensuring alignment with strategic priorities.

Control by majority with annual review of leadership clause

This variation applies when majority control includes an annual review of leadership.

The majority shareholders, holding [X]% of the voting rights, will conduct an annual review of the company’s leadership team, including the CEO and senior executives. Based on the review, the majority can approve changes in leadership or executive compensation.

Control by majority with shareholder proposal review clause

This variation applies when majority control includes reviewing shareholder proposals.

[Party Name] agrees that the majority shareholders, holding at least [X]% of the voting shares, will have the power to review and approve any proposals made by other shareholders. Proposals must be reviewed and ratified by the majority before they are presented to the wider shareholder group.

Control by majority with approval of related party transactions clause

This variation applies when majority control governs related party transactions.

The majority shareholders, holding [X]% or more of the shares, will have the authority to approve any related party transactions involving executives, board members, or affiliated entities. These transactions must be reviewed to ensure fairness and transparency.

Control by majority with setting executive goals clause

This variation applies when majority control sets executive performance goals.

The majority shareholders, holding [X]% of the voting shares, will set annual performance goals for the company’s executives, including financial targets, operational efficiency, and strategic initiatives. These goals will align with the majority’s overall business strategy.

Control by majority with operational budget approval clause

This variation applies when majority control includes approval of operational budgets.

The majority shareholders, holding [X]% of the voting shares, will have control over the approval of the company’s annual operational budget. No expenditure or investment exceeding a specified amount will be made without their prior approval.

Control by majority with executive decision veto clause

This variation applies when majority control includes veto power over executive decisions.

[Party Name] grants the majority shareholders, holding at least [X]% of the voting shares, the right to veto decisions made by the executive team. This veto power will apply to major financial decisions, strategic changes, and operational shifts proposed by executives.

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This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.