Shareholder Approval

Shareholder approval refers to the process where a company seeks consent from its shareholders for certain significant decisions or actions, such as mergers, acquisitions, or changes to corporate policies. Shareholders, who own shares in the company, typically vote on these matters during annual meetings or special gatherings. Their approval is crucial because it ensures that the interests of those who have invested in the company are considered and that major moves align with their expectations. This process helps maintain transparency and accountability in corporate governance.