Asked by James Bertakis on Jun 15, 2024
Verified
Which of the following is untrue about fundamental changes of corporations?
A) Fundamental changes include charter amendments, mergers, consolidations, and dissolution.
B) Fundamental changes of corporations are authorized by state incorporation statutes.
C) Shareholder approval for fundamental changes usually needs to be unanimous.
D) The 1999 revisions to the RMBCA contained substantial revisions to the RMBCA's treatment of fundamental changes.
RMBCA
The Revised Model Business Corporation Act, a set of model laws prepared by the American Bar Association to provide a standard for the governance of business corporations in the United States.
Fundamental Changes
Significant alterations in the operations, structure, or activities of an organization or system that have a profound effect on its function.
Charter Amendments
Changes or modifications made to a corporation’s charter or articles of incorporation, typically requiring approval from shareholders and/or regulatory authorities.
- Grasp the legal consequences and responsibilities of corporations that undergo fundamental changes such as mergers, consolidations, and dissolutions.
Verified Answer
TQ
taylor quickJun 19, 2024
Final Answer :
C
Explanation :
Shareholder approval for fundamental changes typically requires a specified majority vote, not unanimity. This threshold varies depending on the corporation's bylaws and the laws of the state in which it is incorporated, but unanimity is not the standard requirement.
Learning Objectives
- Grasp the legal consequences and responsibilities of corporations that undergo fundamental changes such as mergers, consolidations, and dissolutions.