When the board of directors of a parent corporation approves its merger with its subsidiary and sends a copy of the merger plan to the subsidiary's shareholders,such a merger is called a(n):
A)semi-merger.
B)half-merger.
C)incomplete merger.
D)short-form merger.

Question

Quizplus · Accepted Answer

Many statutes, including the MBCA,permit a merger between a parent corporation and its subsidiary without the approval of the shareholders of either corporation.Instead,the board of directors of the parent approves the merger and sends a copy of the merger plan to the subsidiary's shareholders.This simplified merger is called a short-form merger.

When the Board of Directors of a Parent Corporation Approves