Asked by Amane gebiraye on Jun 14, 2024
Verified
A "short-form merger" requires shareholder approval of both corporations.
Short-form Merger
A short-form merger is a type of merger that allows a parent company to absorb a subsidiary without the approval of the shareholders of the subsidiary.
Shareholder Approval
The process by which a corporation's shareholders vote on and approve certain corporate actions or decisions.
- Identify the characteristics and requirements of different merger types, including short-form mergers and consolidations.
Verified Answer
AB
ahmad barakatJun 21, 2024
Final Answer :
False
Explanation :
A "short-form merger" allows a parent company to merge with its subsidiary without the need for separate shareholder approval from the subsidiary. However, the parent company's board of directors must approve the merger, and minority shareholders of the subsidiary have appraisal rights to ensure they receive fair value for their shares.
Learning Objectives
- Identify the characteristics and requirements of different merger types, including short-form mergers and consolidations.