tutudesz:

If you list your company on stock exchange, you can only keep 20% of the company shares

Well, it's not compulsory you list it on the stick exchange.

I'm actually referring to partnership though.

Very interesting topic. I'll break it down as follows:

1. Ownership of a company is tantamount to holding shares of the Company. In this case, the founder will hold majority of the shareholding The board of directors cannot remove a shareholder of a company. CAMA does not give the directors the right to do so. As long as a person is a shareholder of a company, only that individual reserve the power/right to divest as he/she pleases. Even where the Company increases its capital structure and the founder's shares become diluted overtime, the board has no power to remove that person as a shareholder.

2. Where a majority shareholder/founder is engaged in an executive capacity as an employee of the Company (in this case, either the CEO, MD or ED), the Board has the power to remove him/her. However, if the founder/majority shareholder is on the board in a non-executive role, ONLY the shareholders (at an AGM) or the regulators (exercising oversight functions) like NCC, CBN etc can remove such an individual. The other board members have no power to remove a fellow director.

Of course. They can't allow mismanagement of their assets by u. just cos u funded the company

/
Yes.

That's why it is laughable to hear Ms Y with a Weavon shop in Lekki saying she is the CEO of XYZ.

/

meobizy:
A company can grow bigger than the CEO. There's no new idea under the sun. If you can think it then another person can grow it better. Africans can't see past their nose so try their best to stifle innovative minds. Many companies here, if situated in developed nations, will face a swift removal of their founding fathers.

Abeg, make your points without rubbishing Africans.

You're typing like the average investors. All they care about is money.

Hseffa:

............
Your submission isn't practicably applicable in corporate world. Read how Adenuga pushed former President, Gen. Yakubu Gowon out of African Petroleum. Just guard yourself. You become more predisposable, the moment your incorporated company grows to level of trading on the Nigerian Stock Exchange!
Immediately, Security Exchange Commission register and vet daily your company performance trends. They are absolute CRAZIER THAN THE STOCK EXCHANGE COMMISSION!
Reasons, big businessmen always use Abuja connection to PUSH OUT THE DIRECTOR GENERAL OF SECURITY EXCHANGE COMMISSION.
NSE is paddy-paddy activities. Which Dangote used over Otedola's defunct Zenox Oil!
SEC are weyreys. Strictly pros. Even NSE guys fear them.

Interesting analysis. Pls do tell us more about this SEC and how Dangote took charge of Otedola's Zenox Oil.
I only know about oceanic bank and intercontinental bank back then during Sanusi's reign and more recently the First bank and Oba otudeko saga.

Kobicove:
The fact that you founded the company does not necessarily mean that you're the most suitable to manage it when it grows to a certain level or when some conditions of operation change.

So, yes the Board of Directors can fire the owner!

i have this phobia of loosing what I started for those who weren't there when I suffered for the little beginning just because of being stake holders or board of trustees

Can't one person own a company?why must we add other people to it?when I was opening my company the lawyer told me I must have another director so I brought a friend and gave me 10% shares and I really want to remove him because we are far apart..the last time I wanted to fix my cooperate account I know the stress that gave me..they needed his signature before I could fix it..

socialmediaman:
If the board’s collective shares are above 50%, they can fire the CEO even if he’s the founder of the company.

TheGodmother:
Definitely.

As long as it's a public trading company, the owner is just a shareholder.

Others have invested money in his company.

So he can't break any rule.

But it will be very difficult to fire him, if ALL the shareholders don't agree.

It's a consensus decision.

firing him you are talking about is it that he will never have anything to do with the company or be demoted but still be getting his usual pay

oluwasegun007:



Well, it's not compulsory you list it on the stick exchange.

I'm actually referring to partnership though.

Ok Partnership!! Just be the majority shareholder, this will give 3 directors out of the 5

Casper21:
The question “Can the board of directors fire the owner?” is becoming increasingly contentious. CEOs and founders of companies often find themselves out of a job after being fired by means of a vote undertaken by the board of the company. If the person in question is not the owner of a controlling share in the company, there is not much they can do to avoid being fired.

Sharing the ownership of a company leads to loss of total control over it. As external investors are brought in, owners' shares get diluted, and the founder of a company can often find that he or she owns less than half of the shares in that company. This leaves him or her at risk of being fired.

If a CEO has a contract in place, he or she may get fired at the end of that contract period, if the company has new owners or is moving in a new direction.

The CEO, despite being the person who incorporated the company, often gets fired in times when the company is experiencing a slump in financial performance. This is because internal company politics and differing leadership styles render people vulnerable.

If a founder gets fired, then the company's investors have obviously lost confidence in that founder's ability to establish profitability. Or, in the case of a company that is already turning a profit, they do not consider the founder capable of helping the company grow and evolving to meet the needs of a changing market.


...Strategies for Avoiding Dismissal....

Tech Crunch advises executives to always remain defensive, working with key players and building personal relationships with board members and shareholders. These, according to Tech Crunch, are the most important strategies in defending oneself from being attacked by the board of one's own company.

Founders and CEOs need to focus on more than the fact that they are indispensable – they also need to recognize the areas in which they are vulnerable. They can do this in a number of ways:

Knowing whether or not a board vote is enough to fire them.

Being aware of whether or not alleged wrongdoings need to have taken place in order for them to be dismissed.

Keeping one's ears open to listen for complaints and expressions of discontent, and
Being careful of the contracts that they sign.
An important step that CEOs can take to protect their position is to get all promises in writing. A CEO should never trust anybody who claims to always have his or her back.

Yeah sure...

Remember Steve Jobs?

sandra50:
Can't one person own a company?why must we add other people to it?when I was opening my company the lawyer told me I must have another director so I brought a friend and gave me 10% shares and I really want to remove him because we are far apart..the last time I wanted to fix my cooperate account I know the stress that gave me..they needed his signature before I could fix it..

Most people use family members has directors to avoid stories

lastchild:
i have this phobia of loosing what I started for those who weren't there when I suffered for the little beginning just because of being stake holders or board of trustees

You'll still have your shares, you'd still be the founder /co-founder and you'd be entitled to some benefits, they might even buy you a house in the most expensive island around but you won't be making decisions as the CEO but as a mere shareholder.

That's just how it works in the corporate world.

stanley000:
not like he was fired, he only stepped down a bit like a sort of retirement plan of which all companies owners do it especially if they have a trusted person nas they need to teach him how to run the company just incase of a demise. Bill gate also did it, for years now gates is no longer the ceo but Microsoft can't do without that name so for generations gate will only sit and earn. Don't be surprised dangote is not necessarily running the coy, he's the head already, he's work everything, all he does is eat and sign papers.

He was fired.

kingbobby:
firing him you are talking about is it that he will never have anything to do with the company or be demoted but still be getting his usual pay

It depends.

If he was involved in a major scandal that will affect the company, the board will fire him and he will sell his shares to the board of directors.

If it's something not serious, he will sell some part of his shares and cease to become the major shareholder (if he was the major shareholder).

sandra50:
Can't one person own a company?why must we add other people to it?when I was opening my company the lawyer told me I must have another director so I brought a friend and gave me 10% shares and I really want to remove him because we are far apart..the last time I wanted to fix my cooperate account I know the stress that gave me..they needed his signature before I could fix it..

So when you die, people's money and investments can also die abi?

Or you don't look forward to owing a legacy? You think the owners of world's 500 biggest companies are still alive?

The founders of Tesco, Apple, Nokia, Aldi, Nike, Adidas, Puma, Lidl, Walmart, and other Fortune 500 companies are all dead.

If you own 100% shares, your company won't outlive you.

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

Owning about 60% share of your company will limit the success of your company. The company won't be that large. Check out the most successful companies, the owners own far less percentage of the share. Zuckerberg owns about 20% of facebook, Jim Ovia owns about 9% of Zenith, etc.

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

u deserve a weekend vacation in Sheraton Abuja.

What nonsense. Only gold diggers do that. I will first of all fire them before they fire me.

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

My dad suffer from this same thing, he's regretting till Tomorrow... Thank God he later find his feet somewhere else...

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

Talk is cheap..when you are looking for funds u are always desperate and vulnerable

Juenwume:

Owning about 60% share of your company will limit the success of your company. The company won't be that large. Check out the most successful companies, the owners own far less percentage of the share. Zuckerberg owns about 20% of facebook, Jim Ovia owns about 9% of Zenith, etc.

what about Dangote, Adenuga, Inosson etc...

beautyhd:
It's possible if the collective shares of the directors are up to 60 percent.

In this case he is removed from the position and decision making powers taken from him but somehow still retained as the founder of the company.

Best strategy is to retain majority voting shares and other type of shares. Any share adjustment will come from the remaining 40%

Na voting shares dem dey use make decisions

That way, even if one sacked as CEO, you're still the owner of the company and still have mouth In decision making.

Something similar happened to Uber founder. Was ceo but got sacked by the board

Baba now sits on board of directors.

abumeinben:


Yeah sure...

Remember Steve Jobs?

And Travis kalanick of Uber

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

U never ready na for big companies if u see 5% even them try for you

sandra50:
Can't one person own a company?why must we add other people to it?when I was opening my company the lawyer told me I must have another director so I brought a friend and gave me 10% shares and I really want to remove him because we are far apart..the last time I wanted to fix my cooperate account I know the stress that gave me..they needed his signature before I could fix it..

Going by the new companies and allied matters act it is now possible. https://thenigerialawyer.com/one-person-can-now-own-a-company-in-nigeria/

tutudesz:
Avoid such situations, don't take your company to stock exchange it better to be a millionaire and control your company, than to be a billionaire and lose control

dangote is on the stock exchange and he's still in control

Plus5:
.

It can happen, it happened last week to the founder of Lekoil.

Strive the founder of Econet now Airtel.

The business needed huge capital when investors came the share of the founder reduced to 5%. The GSM license was bought at $280 million about 20 years ago.
Even with the 5% owners Strive became a multi millionaire in dollars. I learnt he is now the first black billionaire in UK

Can tenants fire landlord or give him quiet notice?

If you want full ownership then don't seek outside investment

These days, you can't build a company without outside investment

thebosstrevor1:
Yes.

Many startups founders suffer from this problem. They eventually become employees or they get sack from the company they founded

Smart founders do not allow outside investors have a higher share than them.

it is highly impossible for a start-up to not have investors have larger shares because to build an empire they need those billions of investors fund no start up founder have that amount the only thing they are bringing to to table are the ideas. Unless you don't want your company to grow rapidly then you can ignore the investors fund and start small and take your time.

Kobicove:
The fact that you founded the company does not necessarily mean that you're the most suitable to manage it when it grows to a certain level or when some conditions of operation change.

So, yes the Board of Directors can fire the owner!

Right and wrong. Depend on who owns the CONTROLLING shares!