# kaal:claim:3017612-036

**Claim.** Even though New York decisions such as Adler v. Svingos suggest veto arrangements outside the charter will be specifically enforced, the better practice remains to amend the charter to insert them.

**Type.** normative  **Support.** argued

**Holds when.**

- New York close corporations
- high voting or unanimity requirements

**Source quote.**

> While shareholders of New York close corporations may be able to set up veto provisions without amending the corporation's charter, the better practice is to amend the charter to insert such arrangements.

**From.** Wulf A. Kaal, *Shareholder Agreements - National Report of the United States of America* (2017), IV.1 Legal Effects on the Corporation, page 17

**Cite as.** Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017). SSRN: https://ssrn.com/abstract=3017612

**Verify.** sha256 of source PDF `33821db406f92efbe1698fbaed37687595c13b7ce5463b4a879df679fd4af1ac` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Shareholder%20Agreements%20-%20National%20Report%20of%20the%20United%20States%20of%20America.pdf

**Topics.** governance-design

**Keywords.** veto-provisions, new-york, charter-amendment, best-practice

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