What must stockholders approve for changes in company structure?

Stockholders must approve merger or acquisition plans because such fundamental changes to a company's structure can significantly affect ownership, control, and the direction of the business. A merger or acquisition often involves combining resources, assets, and liabilities, which can directly impact shareholders’ investments and influence the future operational strategies of the company.

By requiring stockholder approval for these plans, companies ensure that those who have a financial stake in the business have a say in critical decisions that can alter the landscape of the organization. This process enables stockholders to assess and affirm their confidence in the management’s strategy towards growth, sustainability, and overall corporate governance.

In contrast, revisions of company bylaws may not always require direct stockholder votes, depending on the nature of the bylaw changes. Annual financial statements are typically reviewed by stockholders but do not require formal approval, and quarterly dividend declarations are usually decided by the board of directors without needing shareholder approval, making them less critical in terms of structural changes.