Shareholder approval is not required for consolidation.

Shareholder Approval

The consent given by shareholders, usually through a voting process, for certain decisions or actions proposed by a company's management or board.

Consolidation

The process of combining two or more entities into one, often to streamline operations and reduce costs.

Understand the legal and financial prerogatives and obligations of corporations involved in the acquisition and merging processes.
Understand the consequences of shareholder rights, particularly the rights of dissenting shareholders during mergers and consolidations.

Verified Answer

ShaBreka NiamekoJun 10, 2024

Final Answer :

False

Explanation :

Shareholder approval is generally required for consolidation because it involves combining two or more companies into a new entity, which significantly affects the shareholders' interests in the original companies.

Learning Objectives

Understand the legal and financial prerogatives and obligations of corporations involved in the acquisition and merging processes.
Understand the consequences of shareholder rights, particularly the rights of dissenting shareholders during mergers and consolidations.

Shareholder approval is not required for consolidation.

Definitions

Learning Objectives

Learning Objectives

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