What is the minimum board member requirement to authorize a transfer in a corporation with fewer than 21 members?

In a corporation with fewer than 21 members, the appropriate threshold for authorizing a transfer is a two-thirds vote of the board members. This requirement is often put in place to ensure that there is significant agreement among board members before making substantial decisions that could affect the direction or stability of the corporation.

A simple majority, while sufficient in many cases for other types of decisions, does not ensure enough consensus for significant actions such as transfers in smaller groups, where a simple majority could easily represent just over half of the members without a strong majority backing. Unanimous consent and a majority of shareholders are also not suitable for this context, as they set much higher or different thresholds which may not align with the governance procedures typically established for smaller corporations.

Thus, a two-thirds vote is not only a sensible measure for significant decisions but also reflects an appropriate balance of authority and responsibility among board members in smaller corporate settings.