Stacia, a shareholder in ZipCorp, learns that ZipCorp's Board of Directors have voted for ZipCorp to merge with ZenCorp. Stacia objects to the merger because the shareholders did not vote to approve the merger. Under which of the following scenarios would a shareholder, like Stacia, not have a right to vote for a merger?
A) If ZenCorp were a foreign corporation.
B) If ZipCorp were a foreign corporation.
C) If the FCC approved ZenCorp's plan.
D) If ZenCorp owned at least three-fifths of ZipCorp's stock.
E) If ZenCorp owns at least 90% of the outstanding shares of ZipCorp stock.

Question

Quizplus · Accepted Answer

If ZenCorp owns at least 90% of the outstanding shares of ZipCorp stock, it can typically merge with ZipCorp without a shareholder vote due to the "short-form merger" rule.

Stacia, a Shareholder in ZipCorp, Learns That ZipCorp's Board of Directors