Fundamental changes to a corporation:
A) fall within the authority of the board of directors.
B) include the sale of substantially all of the corporation's assets in the regular course of business.
C) need to be approved by shareholders,by a majority of the shares present at a meeting at which a quorum is present,under the 1999 amendments to the Revised Act.
D) require unanimous shareholder approval.

Question

Quizplus · Accepted Answer

According to the 1999 amendments to the Revised Act, fundamental changes to a corporation, such as mergers, consolidations, or amendments to the articles of incorporation, require approval by a majority of shares present at a meeting where a quorum is present. This means that choice C is the correct answer. Choice A is incorrect because while the board of directors has significant authority over a corporation, fundamental changes require shareholder approval. Choice B is incorrect because while the sale of assets is a significant change, it must be in the regular course of business to not require shareholder approval. Choice D is incorrect because while unanimous shareholder approval may be required for some changes, it is not the general requirement for fundamental changes.

Fundamental Changes to a Corporation