Fact Pattern 31-6 Sweet Inc. acquires all of the assets of Tart Inc . by direct purchase.
Refer to Fact Pattern 31-6. Approval of the deal between Sweet and Tart is subject to the approval of the shareholders of
A) both corporations.
B) Sweet.
C) Tart.
D) neither corporation.

Question

Quizplus · Accepted Answer

The approval of the shareholders of Tart Inc. is required because they are selling all of the company's assets, which is a significant corporate action. Sweet Inc.'s shareholders typically do not need to approve asset purchases unless it significantly affects the company.