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Libraries:   FAQs - Listings
Filters:   Shareholder Approval,Voting Rights; All
 
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Frequently Asked Questions
  How do Nasdaq's shareholder approval rules apply to strategic partnerships or stock-for-stock swaps between companies?
Identification Number 184
When a listed company and another company enter into a strategic partnership and exchange shares, the transaction should be analyzed under Listing Rule 5635(a). Thus, for these types of transactions, companies will generally be prohibited from issuing shares that equal or exceed either 5% or 20%, as applicable, of the total shares outstanding or total votes outstanding on a pre-transaction basis without first obtaining shareholder approval, without regard to the price at which the shares are issued.  
 
Publication Date*: 7/31/2012 Mailto Link Identification Number: 184
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