Fact Pattern 31-5 Lender Inc. owns more than 90 percent of the stock of Mortgage Inc .
Refer to Fact Pattern 31-5. A copy of a plan for a merger of Lender and Mortgage must be sent to each shareholder of
A) both corporations.
B) Lender.
C) Mortgage.
D) neither corporation.

Question

Quizplus · Accepted Answer

When a parent company owns more than 90% of a subsidiary, a short-form merger can occur, which typically requires sending a copy of the merger plan only to the subsidiary's shareholders, not the parent company's.