According to the Practical Accountancy Loose Leaf, the four fundamental transactions you need shareholder approval for are:
If you're a regulated company, you must get permission from your shareholders before you enter into these fundamental transactions. If you don't, they could take you to court!
Don't take that risk!
Here's how you get your shareholders' permission for fundamental transactions
If you want to enter into a fundamental transaction, you must send a notice to shareholders who will then convene a meeting to debate whether or not they'll agree to the transaction.
In other words, they must pass a 'special resolution'.
This special resolution is a decision that must be approved by 75% of shareholders to be accepted. This percentage can be changed within certain limits if the shareholders agree.
One word of caution: The notice must be in a specific format. It must say what:
If this notice isn't in this specified format, the shareholders could oppose the special resolution on these grounds. So ensure your notice is 100% correct before you send it out.
It's that simple. Once you've got your shareholders' approval, go ahead with the fundamental transaction.