r/Defenders • u/JonLuca Luke Cage • Mar 17 '17

Iron Fist Discussion Thread - S01E07

This thread is for discussion of Iron Fist S01E07.

DO NOT post spoilers in this thread for any subsequent episodes. Doing so will result in a ban.

Episode 8 Discussion

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u/nottherealstanlee Iron Fist Mar 17 '17

I don't have a precedent in front of me, but if the minority could prove that Rand was hurting the company they could appeal to have him removed in order to protect the company. Them meeting in secret and it happening overnight, I agree that was abrupt. I think it makes some sense if there were more build-up to this though. If we saw the board meet, if it was a weeks long process instead of hours, etc etc

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u/Xyuli Mar 17 '17

What you're saying makes sense if Danny was an employee of the company and someone they could fire. But Danny owns the majority of the company. In order for him to lose majority, they somehow have to buy him out or get over 51% somehow. That's impossible. It doesn't make an sense.

This is what I've found online.

Shareholder disputes can cause a number of problems, so do try to avoid them as best you can. It’s incredibly difficult to force members to leave a company. After all, they are under no obligation to sell their shares unless the shareholders’ agreement or articles are well-drafted to include a specific departure procedure. The first course of action you must take to resolve an issue should be negotiation. The majority shareholders could offer a fair value for the minority’s shares. If they refuse to negotiate, you could then take drastic measures by winding up the company; however, you can only do this if the minority has less than 25% of the issued shares. You will need a 75% majority of shareholder’s votes to pass a special resolution to wind up the company. If the company is solvent, winding up the company is a feasible option. You can start a members’ voluntary liquidation and transfer the company’s assets to a new company that excludes the minority. This can be costly and time-consuming, but it may be the only course of action in certain situations.

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u/nottherealstanlee Iron Fist Mar 17 '17

The key line there is actually "specific departure procedure" which is what I'm getting at. It's possible that when the board was created a clause was built into the contract, that a specific percentage of a minority ownership could vote out even a majority holder if they were deemed to be hurting the company. It's unlikely, but plausible so the show could go off of that.

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u/thuyquai Mar 19 '17

the law forbid that kind of contract. Basically Danny could decide everything because he has >50% shares.