An ordinary merger or share exchange requires the recommendation of the board of directors of each corporation.

Question

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An ordinary merger or share exchange usually requires the recommendation of the board of directors of each corporation involved in the transaction. The board of directors serves as the governing body of the corporation and is responsible for making major decisions, including whether to approve a merger or share exchange. The board typically evaluates the terms and conditions of the transaction and considers its potential impact on shareholders, employees, customers, and other stakeholders before making a recommendation. However, in some cases, a hostile takeover or other type of acquisition may be made without the recommendation or approval of the target company's board of directors.

An Ordinary Merger or Share Exchange Requires the Recommendation of the Board