New Jersey § 14a:10-3

§ 14a:10-3.

Approval by shareholders. (1) The board of each corporation, upon approving such plan of merger or plan of consolidation,

shall direct that the plan be submitted to a vote at a meeting of shareholders. Written notice shall be given not less than 20 nor more than 60 days before such

meeting to each shareholder of record, whether or not entitled to vote at such meeting,

in the manner provided in this act for the giving of notice of meetings of shareholders. Such notice shall include, or shall be accompanied by (a) A copy or a summary of the plan of merger or consolidation; and (b) A statement informing shareholders who, under Chapter 11 of this act, 1 are entitled to dissent, that they have the right to dissent and to be paid the fair

value of their shares and outlining briefly, with particular reference to the time

periods within which actions must be taken, the procedures set forth in Chapter 11

of this act with which they must comply in order to assert and enforce such right. (2) At each such meeting, a vote of the shareholders shall be taken on the proposed

plan of merger or consolidation. Such plan shall be approved upon receiving the affirmative vote of a majority of

the votes cast by the holders of shares of each such corporation entitled to vote

thereon, and, in addition, if any class or series is entitled to vote thereon as a

class, the affirmative vote of a majority of the votes cast in each class vote; except

that, in the case of a corporation organized prior to January 1, 1969, the plan of

merger or consolidation shall be approved upon receiving the affirmative vote of two-thirds

of the votes so cast. Any class or series of shares of any such corporation shall be entitled to vote

as a class if the plan of merger or consolidation, as the case may be, contains any

provision which, if contained in a proposed amendment to the certificate of incorporation,

would entitle such class or series of shares to vote as a class unless such provision

is one which could be adopted by the board without shareholder approval as referred

to in subsection 14A:9-2(2). The voting requirements of this section shall be subject to such greater requirements

as are provided in this act for specific amendments or as may be provided in the certificate

of incorporation. (3) Subject to the provisions of section 14A:5-12 , a corporation organized prior to January 1, 1969, may adopt the majority voting

requirements prescribed in subsection 14A:10-3(2) by an amendment of its certificate

of incorporation adopted by the affirmative vote of two-thirds of the votes cast by

the holders of shares entitled to vote thereon. (4) Notwithstanding the provisions set forth in subsections 14A:10-3(1) and 14A:10-3(2),

the approval of the shareholders of a surviving corporation shall not be required

to authorize a merger (unless its certificate of incorporation otherwise provides)

if (a) The plan of merger does not make an amendment of the certificate of incorporation

of the surviving corporation which is required by the provisions of this act to be

approved by the shareholders; (b) Each shareholder of the surviving corporation whose shares were outstanding immediately

before the effective date of the merger will hold the same number of shares, with

identical designations, preferences, limitations, and rights, immediately after; (c) The number of voting shares outstanding immediately after the merger, plus the

number of voting shares issuable on conversion of other securities or on exercise

of rights and warrants issued pursuant to the merger, will not exceed by more than

40% the total number of voting shares of the surviving corporation outstanding immediately

before the merger; and (d) The number of participating shares outstanding immediately after the merger, plus

the number of participating shares issuable on conversion of other securities or on

exercise of rights and warrants issued pursuant to the merger, will not exceed by

more than 40% the total number of participating shares of the surviving corporation

outstanding immediately before the merger. (5) As used in subsection 14A:10-3(4): (a) “ Participating shares ” means shares that entitle their holders to participate without limitation in distributions. (b) “ Voting shares ” means shares that entitle their holders to vote unconditionally in elections of

directors. (6) Notwithstanding the provisions set forth in subsections 14A:10-3(1) and 14A:10-3(2),

the approval of the shareholders of a corporation shall not be required to authorize

a merger with or into a single indirect wholly-owned subsidiary of that corporation

(unless its certificate of incorporation otherwise provides) if: (a) the corporation, the holding company and the indirect wholly-owned subsidiary

of the corporation are the only parties to the merger; and (b) each shareholder of the corporation will hold the same number of shares of the

holding company, with identical designations, preferences, limitations and rights,

immediately after the effective date of the merger; and (c) the corporation, the indirect wholly-owned subsidiary and the holding company

are domestic corporations; and (d) the certificate of incorporation and bylaws of the holding company immediately

after the effective date of the merger contain provisions identical to the certificate

of incorporation and bylaws of the corporation immediately before the effective date

of the merger, other than provisions, if any, regarding the incorporators, the corporate

name, the registered office and agent, the initial board of directors, the initial

subscribers for shares and the provisions necessary to effect a change, exchange,

reclassification or cancellation of shares, if such change, exchange, reclassification

or cancellation has become effective prior to the effective date of the merger; and (e) the surviving corporation, as a result of the merger, remains or becomes a direct

or indirect wholly-owned subsidiary of the holding company; and (f) the directors of the corporation remain or become the directors of the holding

company upon the effective date of the merger; and (g) the certificate of incorporation of the surviving corporation immediately after

the effective date of the merger is identical to the certificate of incorporation

of the corporation immediately before the effective date of the merger, other than

provisions, if any, regarding the incorporators, the corporate name, the registered

office and agent, the initial board of directors, the initial subscribers for shares

and the provisions necessary to effect a change, exchange, reclassification or cancellation

of shares, if such change, exchange, reclassification or cancellation has become effective

prior to the effective date of the merger; provided that: (i) the certificate of

incorporation of the surviving corporation shall contain a provision requiring that

any act or transaction by or involving the surviving corporation that requires for

its adoption under N.J.S.14A:1-1 et seq. , or its certificate of incorporation, approval by the shareholders of the surviving

corporation, other than the election or removal of directors of the surviving corporation,

shall require approval by the shareholders of the holding company (or any successor

by merger), by the same vote as is required by N.J.S.14A:1-1 et seq. or by the certificate of incorporation of the surviving corporation, until thereafter

otherwise amended by approval of the shareholders of the surviving corporation and

the holding company; and (ii) the certificate of incorporation of the surviving corporation

may be amended to reduce the number of classes and shares of capital stock that the

surviving corporation is authorized to issue; and (h) the shareholders of the corporation do not recognize a gain or loss for United

States federal income tax purposes as determined by the board of directors of the

corporation. (7) On and after the effective date of a merger authorized by action of the board

of directors of a corporation and without any vote of the shareholders pursuant to

subsection (6) of N.J.S.14A:10-3 : (a) to the extent that the restrictions of the “New Jersey Shareholders' Protection

Act,” P.L.1986, c. 74 ( C.14A:10A-1 et seq. ), applied to the corporation and its shareholders at the effective date of the merger,

the restrictions shall apply to the holding company and its shareholders immediately

after the effective date of the merger in the same manner as if it were the corporation

and all shares of the holding company acquired in the merger shall for purposes of

the “New Jersey Shareholders' Protection Act,” P.L.1986, c. 74 ( C.14A:10A-1 et seq. ) be deemed to have been acquired at the time that the shares of the corporation converted

in the merger were acquired, and provided further that any shareholder who, immediately

prior to the effective date of the merger, was not an interested stockholder within

the meaning of section 3 of the “New Jersey Shareholders' Protection Act,” P.L.1986,

c. 74 ( C.14A:10A-3 ) shall not solely by reason of the merger become an interested stockholder of the

holding company; and (b) if the corporate name of the holding company immediately after the effective date

of the merger is the same as the corporate name of the corporation immediately prior

to the effective date of the merger, the shares of the holding company into which

the shares of the corporation are converted in the merger shall be represented by

the stock certificates that previously represented shares of the corporation. (8) As used in subsections (6) and (7) of N.J.S.14A:10-3 , “ holding company ” means a corporation which, from its incorporation until consummation of a merger

governed by subsections (6) and (7) of N.J.S.14A:10-3 , was at all times a direct wholly-owned subsidiary of the corporation and shares

of which are issued in the merger; and “ indirect wholly-owned subsidiary of the corporation ” means a corporation all the shares of which are owned, directly or indirectly, by

the holding company. (9) A corporation may agree to submit the plan of merger or consolidation to a vote

of its shareholders regardless of whether the board of directors determines at any

time subsequent to approving the plan that the plan is no longer advisable and recommends

that the shareholders reject or vote against the plan. (10) Any plan of merger or consolidation may contain a provision that the boards of

directors of the corporations may amend the plan of merger or consolidation at any

time prior to the time that the merger or consolidation contemplated by the plan of

merger or consolidation becomes effective, provided that an amendment made subsequent

to the adoption of the agreement by the shareholders of any corporation shall not,

without further shareholder approval: (a) alter or change the amount or kind of shares, securities, cash, property, or rights

to be received in exchange for, or on conversion of, all or any of the shares of any

class or series thereof of such corporation; (b) alter or change any term of the certificate of incorporation of the surviving

corporation to be effected by the merger or consolidation; or (c) unless the plan of merger or consolidation expressly provides otherwise, alter

or change any of the terms and conditions of the plan, if that alteration or change

would materially and adversely affect the shareholders of either corporation who are

or were entitled to vote on the plan. In the event the plan of merger or consolidation is amended after the filing of

a certificate of merger or consolidation with the Secretary of State but prior to

the time the merger or consolidation has become effective, a certificate of amendment

of merger or consolidation shall be filed in accordance with subsection (3) of N.J.S.14A:10-4.1 . 1

N.J.S.A. § 14A:11-1 et seq.