Asked by Karen Macauley on Jun 26, 2024
Verified
Which of the following is true regarding state approval of consolidations?
A) There is no requirement that the state approve consolidations.
B) After reviewing the plan to see that legal requirements are met, the secretary of state issues a certificate to grant approval.
C) The secretary of state must approve consolidations so long as the corporate entity at issue has sufficient assets.
D) The secretary of state must approve consolidations so long as creditors of the corporate entity at issue do not remain unpaid.
E) The secretary of state must approve consolidations so long as no more than 10% of either company's shareholders object.
Certificate
A formal document attesting to a certain fact, such as the completion of an educational process or the ownership of a stock.
Secretary of State
An official in the federal and state governments who is responsible for keeping records, managing governmental documents, and often overseeing elections.
Consolidations
The process of combining two or more entities into one, in terms of financial statements, companies, or assets.
- Recognize the requirements for regulatory and shareholder approvals in various corporate restructuring scenarios.
Verified Answer
Learning Objectives
- Recognize the requirements for regulatory and shareholder approvals in various corporate restructuring scenarios.
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