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What is the effect of shareholder approval on a transaction, which violates the voting rights rule?

April 26, 2017Approval Rights rule shareholder transaction violates voting

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What is the effect of shareholder approval on a transaction, which violates the voting rights rule?

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Shareholders may not vote to disenfranchise themselves or to disparately reduce their voting rights. Thus, shareholder approval for the transaction that led to a violation of the voting rights rule will not remedy the violation.