Ontario Barrister and Solicitor Practice Exam

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Who must approve a proposal to change the name of a corporation?

  1. The board of directors

  2. Majority of shareholders

  3. 2/3s of the shareholders voting at a shareholder meeting

  4. The CEO of the corporation

The correct answer is: 2/3s of the shareholders voting at a shareholder meeting

The board of directors, while involved in decision-making for the corporation, does not have sole authority to approve a name change. The majority of shareholders, while important, may not have the final say as other factors may be taken into consideration. The CEO may have a say in the decision, but ultimately, the shareholders would have the final approval. Therefore, the most accurate option is 2/3 of the shareholders voting at a shareholder meeting as they represent the owners and stakeholders of the corporation and hold the power to approve major changes such as a name change.

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