If a company owns 90 percent or more of a subsidiary'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 type of merger is known as a "short-form merger." It allows a parent company that owns 90 percent or more of a subsidiary to merge with that subsidiary without needing approval from the shareholders, streamlining the process significantly.

If a Company Owns 90 Percent or More of a Subsidiary's