In a short-form merger, the parent corporation ________
A) must file for bankruptcy within 30 days of the merger.
B) must hire all members of the merged company.
C) must allow for the board of directors to continue to operate the merged corporation's assets.
D) must own at least 90 percent of the outstanding shares of each class of the subsidiary's stock.
E) does not assume any debt, liabilities or assets.

Question

Quizplus · Accepted Answer

In a short-form merger, the parent corporation must own at least 90 percent of the outstanding shares of each class of the subsidiary's stock to proceed without the approval of the subsidiary's shareholders.

In a Short-Form Merger, the Parent Corporation ________