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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A short-form merger allows a parent company owning a significant majority (usually 90% or more) of a subsidiary's stock to merge with the subsidiary without needing shareholder approval, only requiring the board's approval.

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