A corporation must obtain shareholder approval before the company:
A) sells off a major portion of its business to another company.
B) amends its bylaws.
C) amends its charter.
D) All the above are correct.

Question

Quizplus · Accepted Answer

All of the choices are correct. A major corporate action such as selling off a significant portion of the business to another company, or amending the company's bylaws or charter, can have a significant impact on shareholders. As such, it is important that they have a say in such decisions through a shareholder vote. This helps ensure that the interests of the shareholders are taken into account and that major corporate actions are in their best interests.

A Corporation Must Obtain Shareholder Approval Before the Company