Two directors with exactly 50% share holding - private company

Anil (Querist) 10 September 2014 This query is : Resolved
In most of the private companies where there are only two share holders and two directors, I have observed that the shareholding will not be exactly 50% but it will be 51% and 49%.

Is there any reason why it is normally not exactly 50% each?

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Anirudh (Expert) 10 September 2014
In order to ensure that there is majority and the majority decision should prevail. In case both have 50%, then in case of any difference in view, no conclusion could ever be arrived at. That's why this 51% and 49% share holding pattern.

Anil (Querist) 10 September 2014
Thank you Anirudh Sir.

Now I know the reason.

Please let me know whether Companies Act prohibit 50% holding by each of the two directors? Kindly provide section reference if possible.Thanks

Advocate. Arunagiri (Expert) 10 September 2014
There is no such prohibition in the Act.

It is upto the shareholders, to decide on the holding of stake.

Anil (Querist) 10 September 2014
Thank you for your replies Sir.

T. Kalaiselvan, Advocate (Expert) 16 September 2014
You are welcome for your appreciations, however, please read the concerned books to enrich your academic knowledge.

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