A modification to the company charter that requires 75% shareholder approval for a merger is called a:
A)majority voting amendment.
B)cumulative voting amendment.
C)proxy voting amendment.
D)supermajority amendment.

Question

Quizplus · Accepted Answer

A modification to the company charter that requires 75% shareholder approval for a merger is an example of a supermajority amendment. A supermajority amendment is a change to the company charter that requires a higher-than-majority vote to pass, typically 2/3 or 75% of the shareholders. This is done to ensure that major corporate decisions, such as mergers or acquisitions, are not undertaken without a strong consensus among the shareholders.

A Modification to the Company Charter That Requires 75% Shareholder