§ 10.03 — Amendment proposed by board of directors to the shareholders

Vermont § 10.03

• Jurisdiction: Vermont
• Title 11A: Title 11A: Vermont Business Corporations
• Ch. 10: Chapter 010: Amendment of Articles of Incorporation and Bylaws

Text

(a) A corporation’s board of directors may propose one or more amendments to the articles of incorporation for submission to the shareholders.
(b) For the amendment to be adopted:
(1) the board of directors must recommend the amendment to the shareholders unless the board of directors determines that because of conflict of interest or other special circumstances it should make no recommendation and communicates the basis for its determination to the shareholders with the amendment; and
(2) the shareholders entitled to vote on the amendment must approve the amendment as provided in subsection (e) of this section.
(c) The board of directors may condition its submission of the proposed amendment on any basis.
(d) The corporation shall notify each shareholder, whether or not entitled to vote, of the proposed shareholders’ meeting in accordance with section 7.05 of this title. The notice of meeting must also state that the purpose, or one of the purposes, of the meeting is to consider the proposed amendment and contain or be accompanied by a copy or summary of the amendment.
(e) Unless this title, the articles of incorporation, or the board of directors (acting pursuant to subsection (c) of this section) require a greater vote or a vote by voting groups, the amendment to be adopted must be approved by:
(1) a majority of the votes entitled to be cast on the amendment by any voting group with respect to which the amendment would create dissenters’ rights; and
(2) the votes required by sections 7.25 and 7.26 of this title by every other voting group entitled to vote on the amendment.

Legislative History

(Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)