Bread & Bagels Corporation wants to purchase all of the assets of Coffee & Tea Inc. Dolly is a Coffee & Tea shareholder. The approval of Dolly and other Coffee & Tea shareholders is necessary

Question

Quizplus · Accepted Answer

Approval of the shareholders is necessary in all circumstances for a corporation to sell or transfer its assets to another corporation. It is a fundamental principle of corporate law that the shareholders are the owners of the corporation and they have the right to decide on significant matters such as the sale of company assets.

Bread & Bagels Corporation Wants to Purchase All of the Assets