Deadlock in a closely held corporation stops a business in its tracks. Deadlock happens when a key decision can not be made because there is not enough votes to make the decision. This occurs most often in two situations.
Shareholders of closely held corporations should consider whether additional shares can be sold. A corporation is free to create and sell more stock unless there is something in writing saying it may not.
Idaho Code allows the shareholders of a corporation to sign a shareholder agreement. Idaho Code § 30-29-732. A shareholder agreement may address many different aspects of corporate governance.