What control does a shareholder have over the management of a property company?
A key objective of LeisureNet Properties is to avoid cumbersome and lowest common denominator decision making. Accordingly, at least two representatives of LeisureNet Properties will be the sole Directors of each property company and will have the authority to manage each company without approval from shareholders. However, the Directors will of course be subject to relevant company laws and will have fiduciary duties at law to ensure that each company is operated and run in the best interests of all shareholders. Ultimately, however, the shareholders may elect to instruct a “wind-up” of a company” with a greater than 70% shareholder interest approval.
