A company that owns 100% of the outstanding shares of a subsidiary is required to take over the subsidiary's assets,cancel the subsidiary's shares,and merge the subsidiary into the parent.

Question

Quizplus · Accepted Answer

A company that owns 100% of the outstanding shares of a subsidiary has the option to merge the subsidiary into the parent or keep it as a separate legal entity. They are not required to take over the subsidiary's assets or cancel its shares.

A Company That Owns 100% of the Outstanding Shares of a Subsidiary