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Major transaction

A transaction whose size relative to the company's assets requires approval by the board or by the shareholder meeting.

How to read the number

The approval threshold protects a holder against a material part of the business leaving on one person's signature.

When the metric lies

A deal split into linked parts formally stays under the threshold; what has to be judged is the substance of the operation rather than its paperwork.

Also known as: major transaction

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