Asked by Ariana Gonzalez on Jul 24, 2024

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Salmon Company decides to combine its operations with Tuna Corporation to form United Seafood Inc. Salmon and Tuna are domestic corporations. The plan for Salmon and Tuna's combination must be approved by the shareholders of

A) each corporation.
B) Salmon only.
C) Tuna only.
D) neither corporation.

Shareholder Approval

Shareholder approval refers to the affirmative vote of shareholders, typically required for significant company decisions or changes, such as mergers and acquisitions.

Domestic Corporations

Companies that are incorporated and operate within their home country's jurisdiction.

  • Apprehend the operations and ratifications needed for enterprise merges and buyouts.
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Verified Answer

JL
Juliana LovatoJul 29, 2024
Final Answer :
A
Explanation :
The plan for combining operations, especially in a significant manner such as forming a new entity, typically requires approval from the shareholders of each corporation involved in the merger or consolidation. This ensures that the interests of the shareholders are considered and approved before such a significant corporate action is taken.