If the parent corporation owns 90 percent or more of the outstanding shares of the subsidiary corporation,a short-form merger procedure may be followed to merge the two corporations.

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This statement is true according to most state laws in the United States. The short-form merger procedure allows the parent corporation to merge the subsidiary corporation without obtaining the approval of the subsidiary's shareholders. However, some states may require a higher percentage of ownership, such as 95 percent, for this procedure to be used.

If the Parent Corporation Owns 90 Percent or More of the Outstanding