A in General, What Is Considered a Fundamental Change in a Corporation

question 13

Essay

a. In general, what is considered a fundamental change in a corporation? Give three examples of what would be considered a fundamental change.
b. Who proposes such fundamental changes? Who must approve them? Explain.
c. Brian is a minority shareholder in Gryath, Inc. He opposes a fundamental change that is approved and implemented. What rights does he have?

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Definitions:

Internal Revenue Code

The statutory collection of domestic tax laws that govern federal tax administration in the United States.

Shareholder Level

Refers to the status or category of ownership in a corporation, where individuals or entities own shares representing a portion of the company.

Subchapter S

A designation for corporations that meet specific Internal Revenue Code requirements, allowing them to pass income directly to shareholders and avoid double taxation.

Model Business Corporation Act

A model set of laws prepared by the Committee on Corporate Laws of the American Bar Association to standardize and provide a guideline for corporation law.