Does a “value for value” exchange require shareholder approval?
Yes, unless the plan authorizes it, such an exchange would be considered a material amendment that requires shareholder approval. An example of the this type of exchange is where outstanding options are valued according to a pricing model, and the optionees receive, in exchange for their options, shares of stock equal in value to the calculated value of the stock options.
Yes, unless the plan authorizes it, such an exchange would be considered a material amendment that requires shareholder approval. An example of the this type of exchange is where outstanding options are valued according to a pricing model and the optionees receive, in exchange for their options, shares of stock equal in value to the calculated value of the stock options.
