Inkilwas Corporation has 30,000 outstanding shares. A shareholders' meeting is duly called to amend the articles of incorporation, and 17,501 shares are represented at the meeting. If an Inkilwas Corporation amendment for its articles of incorporation is put to vote at this meeting, which of the following statements is true with respect to the passing of the amendment?

Question

Quizplus · Accepted Answer

The amendment would be passed if 8,751 votes approve, which represents more than 50% of the outstanding shares. Since 17,501 shares are represented at the meeting, a vote of at least half of that (8,751) would be sufficient for the amendment to pass. Option A is incorrect because not all outstanding shares have to be represented for an amendment to pass. Option B is incorrect because the number of affirmative votes needed for the amendment to pass is not dependent on the number of votes present at the meeting. Option C is incorrect because 4,376 votes would represent less than 50% of the outstanding shares and therefore would not be sufficient for the amendment to pass.

Inkilwas Corporation Has 30,000 Outstanding Shares