What is required for transfers in for-profit corporations?

In for-profit corporations, the transfer of shares typically requires the approval of a significant portion of the board of directors, often specified as a two-thirds vote. This requirement is in place to ensure that a substantial consensus is achieved among board members before any changes to share ownership can take place. The need for this majority vote reflects the importance of maintaining governance and oversight within the corporation, allowing those who manage the company to have a say in who becomes a shareholder.

This two-thirds approval helps safeguard the interests of the corporation and its existing shareholders by ensuring that new shareholders align with the company's goals and values. It also prevents a minority group of board members from making unilateral decisions that could potentially alter the direction of the company.

While the majority vote of the shareholders and unanimous consent of the board may relate to different corporate decisions and processes, they do not specifically address the requirements for share transfers in the context of for-profit corporations as outlined in corporate governance standards. Approval from the Secretary of State is typically concerned with formal registrations or filings rather than internal decisions regarding corporate share ownership. Therefore, a two-thirds vote of the board of directors is the most accurate requirement for this specific scenario.