REVIEW NOTES IN REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

Law on Corporations

VOTING REQUIREMENTS

BOARD OF OUTSTANDING COMMON STOCK Appraisal

Written
DIRECTORS Right
NO CORPORATE ACT Voting Non-Voting Assent
Available?
Allowed?
Majority 2/3 Majority 2/3 Majority 2/3
Amendments of Articles of
1 ∎ ∎ ∎ Yes Yes
Incorporation
2 Election of directors ∎
Calling a special meeting to remove
3 ∎
directors
4 Removal of BOD member/director ∎
5 Extension of corporate term ∎ ∎ ∎ Yes
6 Shortening of corporate term ∎ ∎ ∎
Ratifying a contract of a
7 director/trustee/officer with the ∎
corporation
8 Increase/decrease of capital stock ∎ ∎ ∎
Incurring, creating or increasing bonded
9 ∎ ∎ ∎
indebtedness
Sale or other disposition of corporate
10 ∎ ∎ ∎ Yes
assets
Investing corporate funds in another
11 corporation or business or for any ∎ ∎ ∎ Yes
purpose other than the primary purpose
12 Declaration of stock dividends ∎ ∎
13 Declaration of cash dividends ∎
Entering into a management contract,
14 corporation will be the managing ∎ ∎
corporation
Entering into a management contract,
15 corporation will be “to-be-managed” ∎ ∎
corporation
 BOARD OF OUTSTANDING COMMON STOCK Appraisal
Written
DIRECTORS Right
NO CORPORATE ACT Voting Non-Voting Assent
Available?
Allowed?
Majority 2/3 Majority 2/3 Majority 2/3
16 Adoption of by-laws ∎ ∎
Amendment or repeal of by-laws or
17 ∎ ∎ ∎
adoption of new by-laws
Delegation to BOD or trustees the power
18 to amend or repeal the by-laws or ∎ ∎
adoption of new by-laws
Revocation of the proceeding power
19 ∎ ∎
delegated to BOD or trustees
Fixing of issue price of no par value
20 shares (if authorized by Articles of ∎
Incorporation)
Fixing of issue price of no par value
21 shares (if NOT authorized by Articles of ∎
Incorporation)
Effecting or amending a plan of merger
22 ∎ ∎ ∎ Yes
or consolidation