shareholder approval

USAGE SUMMARY

The phrase "shareholder approval" is grammatically correct and commonly used in written English.
You can use it whenever discussing a decision or action that requires the approval of a company's shareholders. This could be for things such as mergers, acquisitions, or changes to company policies. Example: "The company's board of directors has recommended a new business strategy, but it still needs to be voted on and gain shareholder approval at the upcoming annual meeting."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Telkom still needs shareholder approval.

The New York Times

Neither option requires shareholder approval.

The Guardian - Business

LG's offer required two-thirds shareholder approval.

The New York Times

It would also need shareholder approval.

The Guardian - Business

The deal is subject to shareholder approval.

The New York Times

Still, El Paso is banking on still receiving shareholder approval.

The New York Times

Mr. Bogle also urges shareholder approval of corporate political expenditures.

The New York Times

The merger is subject to regulatory and shareholder approval.

The New York Times

After all, it appears rather easy to obtain shareholder approval.

The New York Times

Does a project of this scale require shareholder approval?

The New York Times

Shareholder approval could not be guaranteed either, analysts said.

The New York Times

Expert writing Tips

Best practice

Use "shareholder approval" when referring to formal votes or consents needed for company actions, rather than informal opinions.

Common error

Don't assume that board approval is equivalent to "shareholder approval". While board decisions are important, significant corporate actions often require a separate vote and approval from the shareholders who own the company.

Linguistic Context

The phrase "shareholder approval" functions as a noun phrase, often serving as the subject or object of a sentence. It identifies the act of shareholders formally agreeing to a proposed action, as evidenced by Ludwig's examples.

Expression frequency: Very common

Frequent in

News & Media

50%

Formal & Business

40%

Science

10%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "shareholder approval" is a frequently used and grammatically sound phrase denoting the consent required from a company's shareholders for specific corporate actions. As Ludwig AI confirms, it is correct to use and frequently found in contexts such as news, business, and finance. To ensure clarity, always specify the required percentage of approval and avoid confusing it with board approval. Alternatives like "stockholder consent" or "investor authorization" can be used to add variety to your writing, though "shareholder approval" is the most common and widely understood term.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

stockholder consent

Emphasizes the agreement or permission specifically from stockholders.

investor authorization

Highlights the power of investors to authorize corporate decisions.

shareholder endorsement

Suggests a formal backing or support from shareholders.

stockholder ratification

Implies a formal confirmation or validation by stockholders.

approval by shareholders

A more verbose alternative that retains the core meaning.

consent of shareholders

Focuses on the act of shareholders giving their permission.

authorization from shareholders

Highlights the granting of authority by shareholders.

shareholder sanction

Suggests a formal approval or permission, often in a legal or regulatory context.

green light from shareholders

An idiomatic expression indicating permission or approval to proceed.

shareholder assent

Implies a formal agreement or acceptance by shareholders.

FAQs

What does "shareholder approval" mean in corporate governance?

"Shareholder approval" signifies that a proposed corporate action, such as a merger or a major executive compensation plan, must be voted on and approved by the company's shareholders before it can be implemented.

When is "shareholder approval" typically required?

"Shareholder approval" is typically required for significant events like mergers and acquisitions, major asset sales, changes to the corporate charter, and certain executive compensation plans. The specific requirements are usually defined by law or the company's governing documents.

What happens if a proposal doesn't receive "shareholder approval"?

If a proposal fails to gain "shareholder approval", the company cannot proceed with the proposed action. The board of directors may need to revise the proposal, abandon it altogether, or seek alternative solutions.

What are some alternatives to the phrase "shareholder approval"?

You can use alternatives like "stockholder consent", "investor authorization", or "approval by shareholders" depending on the specific nuance you want to convey.