If a merger increases the number of the surviving corporation's shares by no more than 20 percent, most states do not require ________.
A) the approval of the surviving corporation's shareholders
B) SEC approval.
C) any paperwork to be filed with the state's Corporation Commission.
D) that the surviving corporation pay taxes on the merger.
E) property taxes to be paid for two years to allow the merged corporation to become established.

Question

Quizplus · Accepted Answer

In most states, if a merger does not significantly alter the share structure of the surviving corporation (defined as no more than a 20 percent increase in shares), the approval of the surviving corporation's shareholders is not required. This is because the impact on individual shareholder's equity is seen as minimal.

If a Merger Increases the Number of the Surviving Corporation's