American Greetings,a family-owned corporation,wished to take the company private,and the family shareholders made an offer to purchase the shares of all non-family members.The family owns 10% of the company's shares,but has 50% of the voting power.The board refused to approve the offer for the shares because the price was too low.Which of the following is correct?
A)The approval of the board is not required for the family purchase of shares.
B)The board's failure to approve the transaction means that the acquisition cannot be done without dissenting shareholders.
C)The approval of the board cannot be obtained until the family uses its votes to restructure the board with directors friendly to its proposal.
D)Those with a minority interest cannot acquire other shares.

Question

Quizplus · Accepted Answer

The board's refusal to approve the transaction means that the acquisition cannot proceed without addressing the concerns of dissenting shareholders, as board approval is typically required for such transactions.

American Greetings,a Family-Owned Corporation,wished to Take the Company Private,and the Family