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