patorial:


You can't fire the owner of a company, you can only fire an executive.

To have a Board of Directors, a company MUST have shareholders or stockholders, hence a Private Limited company and NOT a Sole Proprietorship. So, if a company has Board of Directors, the person who started the company (technically the OWNER) can be fired by the Board of Directors. For your information, CEO is only a title, so the owner or who started the company can be come a CEO, President, VP, CFO or COO. But the question that was asked was whether a Board of directors can FIRE the OWNER and the answer still remains ABSOLUTELY YES!

He might be fired from the Board, but not totally from the company, especially if he has a controlling stake in the business. Depends on what was agreed when the investors came to invest.

You can't deal the "owner" of the company. For you to be the owner, you must have controlling interest... Forget about the founder of the company.
The founder and the owner of a company are not usually the same person(s).

The owner of a company at any given point in time is the person or organization that controls the vote. The own at least 50.1% of the share capital.

And no... You can't sack them!

ikenna44:
You can't deal the "owner" of the company. For you to be the owner, you must have controlling interest... Forget about the founder of the company.
The founder and the owner of a company are not usually the same person(s).

The owner of a company at any given point in time is the person or organization that controls the vote. The own at least 50.1% of the share capital.

And no... You can't sack them!

What if no individual shareholder owns more than 20% equity? In such case, the highest shareholder will not have controlling votes and can be voted out by other shareholders or the BOD if he holds an executive function in the company.

UnabashedIPOB:


To have a Board of Directors, a company MUST have shareholders or stockholders, hence a Private Limited company and NOT a Sole Proprietorship. So, if a company has Board of Directors, the person who started the company (technically the OWNER) can be fired by the Board of Directors. For your information, CEO is only a title, so the owner or who started the company can be come a CEO, President, VP, CFO or COO. But the question that was asked was whether a Board of directors can FIRE the OWNER and the answer still remains ABSOLUTELY YES!

If the owner does not function in an executive capacity for the company i.e as MD or CEO, the Board of directors cannot sack him/her.

Mandesz:
It's not possible. The owner of the company appoints director of be the cost. He can also fire them as well. He's likely to appoint relative or somebody loyal to him.

You have not heard of what happened to Steve Job and how he was fired from Apple.

Yes.
So rampant in developed countries.
It has its merits though.

The selfishness of naija biz Community will never allow them for expansion by inviting third party.

One of the reasons we are stagnant.

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!

See them thieves . . Go and form.ur own

bet9ja:
It is possible if you own 49.9% of the company shares. However, sometimes, you may loose more shares due to the tension or zeal to attract infectors during the first round seeding stage.

For instance, imagine a group of people offering your company a million dollars for a share of 50% due to the company potentials. Meanwhile, you have already sold 30% to a friend for N500,000 at the early stage of the company. Now you are left with 70%.

This mean, you own 70%, your friend own 30% before the angel investors came in, hence the angel investors will own 35% while you also own 35% after the million dollar. When it is time for decision making, the investors and your friend can cooperate to unseat you. Hence, it's not a matter of owning a company and making the decision, it's a matter of accountability and responsibility.

Do you know that Jack -The owner of Alibaba currently own less than 5% of alibaba share which is valued in billion dollars.

Thank you for explaining this in the clearest terms for novices in business and corporate laws like me. I now understand.

phazotron:


Not possible. If you have a solid product and solid plan, investors will come on board

40% is a sizeable amount of shares in a company.

No serious investor who sees a viable company and product will reject 40%

It depends on the capital needed by the computer.

Can you own 60% of a cement Company, GSM Company.

The founder of Econet got 5% of Econet Nigeria about 20 years ago, other shareholders were First Bank, FCMB, Leadway Assurance and other.


The Zimbabwean made good money with his 5% shares, he was later sacked by the board when he was not cooperating for the expansion of the business and does not want to buy mores shares or sell more shares.

He is now the first black billionaire in UK

patorial:


You can't fire the owner of a company, you can only fire an executive.

The founder can be fired as the CEO of the company

ThierryJay:


What if no individual shareholder owns more than 20% equity? In such case, the highest shareholder will not have controlling votes and can be voted out by other shareholders or the BOD if he holds an executive function in the company.

Shareholders and directors can join forces to sack a founder/CEO. Reason why it is important to have at least 50.1% ownership if you cherish control

ThierryJay:


If the owner does not function in an executive capacity for the company i.e as MD or CEO, the Board of directors cannot sack him/her.

Shareholders can remove him at the Annual General Meeting

Oh ok..nice but I think but I think for me not to over stress myself I should wait when I'm married and have kids..

kayphyzee:


Permit me to enlighten you and @Sandra50 on this. The 2020 CAMA now permits an individual to register a Limited Liability Company as a the sole shareholder.

So @Sandra50's concern has now been addressed.

No I never had any kind of issue concerning my company..I only call his attention when I need it..yes I was able to fix it but it's stressed me out

Kirkman:

Wow! This is an eye opener, did you later fix the corporate account issue and have you ever been at logger heads with him before pertaining to issues or decisions that could affect the company positively or negatively?

Yes but I think it's best I change it when I'm married so I wouldn't have to keep changing directors

tutudesz:

You can change your company directors anytime

Ok..

Skyfornia:


Nwanyi oma...let's get married and raise kids. Oge adiro!

sandra50:
Ok..

Adim serious

sandra50:
Yes but I think it's best I change it when I'm married so I wouldn't have to keep changing directors

Are planning on having 5 kids

emmanuelewumi:



Shareholders can remove him at the Annual General Meeting

Shareholders are different from BOD. The question asked by the OP relates to BOD and your previous comment also referenced BOD not shareholders.

BODs alone cannot remove a non-executive owner of a company.

emmanuelewumi:



Shareholders and directors can join forces to sack a founder/CEO. Reason why it is important to have at least 50.1% ownership if you cherish control

True.

ThierryJay:


What if no individual shareholder owns more than 20% equity? In such case, the highest shareholder will not have controlling votes and can be voted out by other shareholders or the BOD if he holds an executive function in the company.

This is another clause that is making sense

No single investor can own more thAn 15-20 percent equity

FengChui:


Yes o!

Whenever I have issues with my dad, the man I'll just walk me out of his house. I'll have to come back days later with relatives to beg him. Me and my Popsy quarrel one day, the Manny say make I comot from him house. I told him to go out and go to his father's house as this is my own father's house.
Baba just form vex, comot from house go drink beer. When we settled, he told me never to tell him that again. But he learnt his lessons. He never ordered me out of the house again.

Lol

Yes, they can, haven't you heard of hostile take over.

That's the disadvantage of going public.

jimcaddy:
He might be fired from the Board, but not totally from the company, especially if he has a controlling stake in the business. Depends on what was agreed when the investors came to invest.

Controlling stake and voting shares is the key.

Once you're in control of this, na you go still dey call the shots even in an unofficial capacity

quentin06:
Yes, they can, haven't you heard of hostile take over.

That's the disadvantage of going public.

That's the major mistake someone who is trying to prevent this can make.

You don't need to go public to grow your business.

ThierryJay:


Shareholders are different from BOD. The question asked by the OP relates to BOD and your previous comment also referenced BOD not shareholders.

BODs alone cannot remove a non-executive owner of a company.

Once board of directors have made up their mind on removing a non executive director who does not have a controlling share, it is a forgone conclusion. What happen at the Annual General Meeting is just for formalities

If you are an investor, will you agree to such a contract. Think it 2ways. You may not get anyone to start the company together withbsuch contract.

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.

phazotron:


This is another clause that is making sense

No single investor can own more thAn 15-20 percent equity

People own shares through proxies, the best bet is to grow organically although it is very slow and then maintain 51% ownership of the company.

Will you rather own 7% of a $1 billion Company or 65% of a $100 million company.

The $1 billion company achieved the feat in 5 years, while the $100 million company achieved the feat in 10 years.

If founders of GTB and Zenith Bank wanted to have 51% ownership of the banks, the banks won't have made a profit after tax of N200 billion in 2020, probably they will be making N10 billion or thereabout

quentin06:
Yes, they can, haven't you heard of hostile take over.

That's the disadvantage of going public.

They can't takeover your shares, shareholders love corporate raiders. They create values for them

phazotron:


That's the major mistake someone who is trying to prevent this can make.

You don't need to go public to grow your business.

Depends on your scope of growth.

emmanuelewumi:



Depends on your scope of growth.

I understand your point, but it's Best to be patient bros.