If a company owns 90 percent or more of the outstanding shares of each class of a subsidiary company's stock,a merger may be effected with approval of the parent's board of directors alone,without resort to shareholders.This is called a:

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This scenario is known as a "short-form merger" or "short-cut merger" where the parent company can merge with its subsidiary company using only the approval from the parent company's board of directors without needing the approval from the subsidiary's shareholders.

If a Company Owns 90 Percent or More of the Outstanding