List and describe the various rules that apply to fundamental corporate changes requiring shareholder approval
A corporation must seek shareholder approval before undergoing any fundamental changes. These are the specific rules:
• Mergers. As a general rule, one corporation cannot merge with another unless a majority of both sets of shareholders approve. This rule is always true for shareholders of the acquired company because they are always affected by the merger. But shareholders of the acquiring company vote only if the merger will have a major impact on their company.
• Sale of assets. Shareholders do not have to approve routine sales of assets, but a company cannot sell "all or substantially all" of its assets without shareholder approval.
• Dissolution. A corporation cannot voluntarily dissolve without shareholder approval. However, the state or a court can involuntarily dissolve a corporation regardless of shareholder views.
• Amendments to the charter. Directors propose amendments to the charter, but these amendments are not valid unless approved by shareholders.
• Amendments to the bylaws. Both directors and shareholders have the right to amend the bylaws.
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Indicate whether the statement is true or false
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What will be an ideal response?