Who is primarily responsible for approving significant corporate transactions?

In the context of corporate governance, significant corporate transactions often require a level of oversight and approval from both the board of directors and the shareholders. The board of directors is responsible for making decisions regarding the day-to-day operations and strategic direction of the corporation, including recommending significant transactions such as mergers, acquisitions, and major investments. However, due to the potential impact these transactions can have on the company's direction, financial health, and overall strategy, shareholders also have a critical role to play.

Shareholders, as the owners of the corporation, often must approve certain significant transactions, particularly those that could alter the ownership structure or fundamental nature of the business. This dual layer of approval ensures that both the management (represented by the board) and the ownership (represented by the shareholders) are aligned on decisions that have far-reaching implications for the company.

This collaborative approach helps to maintain balance and accountability within the corporation, as it allows for various perspectives to be considered before key decisions are made. Thus, the combined responsibility of the board of directors and the shareholders in approving significant corporate transactions is vital to uphold sound corporate governance practices.