Final answer:
An investment company must have the approval of its Board of Directors before it can enter into or renew contracts with an investment adviser or principal underwriter, not necessarily from a shareholder vote, SEC approval, or underwriter fee agreements.
Step-by-step explanation:
An investment company cannot enter into or renew a contract with an investment adviser or principal underwriter unless the Board of Directors approves. When a firm becomes a public company, shareholders vote to elect the board of directors, who are then responsible for making key decisions, including approving contracts with advisers or underwriters. While the more stock a shareholder owns, the more votes they have, it is ultimately up to the directors to make such contract decisions. The approval of the SEC, shareholders voting in favor, or an underwriter agreeing to reduced fees are not directly related to this specific process.