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What is a blocking minority in French company law?

Latest News What is a blocking minority in French company law?

In principle, with the exception of certain SAS companies, in which voting rights and shareholdings can be uncoupled, shareholdings give rise to proportionate voting rights. Whether a shareholder has a blocking minority will depend on the type of decision and the majority required to adopt that decision. If a simple majority is required, a minority shareholder would be unlikely to be able to block a decision. However, in cases where a qualified majority of two-thirds or three-quarters is required, a shareholder with a 34% shareholding or a 26% shareholding could prevent a decision being adopted.