Changing the class rights of shares requires what proportion of that class's approval?

Changing the class rights of shares typically requires the approval of 75% of the shareholders in that particular class of shares. This requirement is in place to ensure that a significant majority of affected shareholders agree to any alterations that could impact their rights, interests, or the economic value of their shares.

The 75% threshold is set to provide a robust measure of consensus among shareholders, reflecting their agreement to changes that could alter the fundamental conditions of their investment. This high level of approval is especially important in maintaining shareholder confidence and the integrity of the corporation’s structure.

Options such as 50% would not provide a sufficient level of agreement to protect minority shareholders from potential majority oppression. Likewise, 66% might not offer enough of a buffer against significant changes that could affect the rights and interests of those holding the class shares. The 100% requirement is impractical, as it would necessitate unanimous consent, making it virtually impossible to implement any changes that a majority of shareholders may support. Thus, the requirement for a 75% majority strikes an appropriate balance between enabling necessary changes and protecting shareholder rights.