Deadlock

Deadlock is a situation, typically involving opposing parties, in which no progress can be made on a decision or issue. For a Company, deadlock may arise where a decision must be made by the managers/Board of Directors OR the members/shareholders and no group has sufficient votes to pass or reject a particular decision. Many times arises when there are an even number of Managers/Directors or two Members with 50-50 voting power and no dispute resolution mechanisms exist.

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