US Laws, Codes, Statutes & Cases

§140.  Resolution granting control share voting rights

A.  Control shares acquired in a control share acquisition have the same voting rights as were accorded the shares before the control share acquisition only to the extent granted by resolution approved by the shareholders of the issuing public corporation.  

B.  To be approved under this Section, the resolution shall be approved by:

(1)  Each voting group entitled to vote separately on the proposal by a majority of all the votes entitled to be cast by that voting group, with the holders of the outstanding shares of a class being entitled to vote as a separate voting group if the proposed control share acquisition would, if fully carried out, result in any of the changes described in R.S. 12:31(C); and

(2)  Each voting group entitled to vote separately on the proposal by a majority of all the votes entitled to be cast by that group, excluding all interested shares.  

Acts 1987, No. 62, §1, eff. June 11, 1987.