BMX Corp. wants to acquire all the assets of Cycle Racing Corp. BMX plans to pay for the assets by issuing its own corporate stock. BMX's board of directors has already approved the merger. In what circumstances would the approval of BMX's shareholders be required for this merger? Is the approval of Cycle Racing's shareholders necessary? Explain.

Question

BMX Corp. wants to acquire all the assets of Cycle Racing Corp. BMX plans to pay for the assets by issuing its own corporate stock. BMX's board of directors has already approved the merger. In what circumstances would the approval of BMX's shareholders be required for this merger? Is the approval of Cycle Racing's shareholders necessary? Explain.​

Quizplus · Accepted Answer

The Answer of BMX Corp. wants to acquire all the assets of Cycle Racing Corp. BMX plans to pay for the assets by issuing its own corporate stock. BMX's board of directors has already approved the merger. In what circumstances would the approval of BMX's shareholders be required for this merger? Is the approval of Cycle Racing's shareholders necessary? Explain.​

BMX Corp Wants to Acquire All the Assets of Cycle Racing