Absent explicit statutory authorization, many courts have refused to enforce veto provisions contained in shareholder agreements, which is why such provisions should be implemented through charter or bylaw amendment.
Source quote, verbatim
explicit statutory authorization, many courts have refused to enforce veto provisions in shareholders' agreements.
From
Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017), IV.1 Legal Effects on the Corporation, p. 17 https://ssrn.com/abstract=3017612 · source PDF
Cite as
Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017). SSRN: https://ssrn.com/abstract=3017612
Holds when
states without statutes specifically authorizing shareholder control agreements
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