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iVinArrow [24]
3 years ago
13

A short-form merger does not require the prior approval of shareholders because it involves: Appraisal rights will be available:

Shareholders of a corporation that ceases to exist when a merger or consolidation takes place:
Business
1 answer:
Mnenie [13.5K]3 years ago
8 0

Answer:

A short-form merger does not require the prior approval of shareholders because it involves the merger of a subsidiary corporation into its parent corporation. For a short-form merger to occur, the parent company must own at least 90% of all outstanding stock of the subsidiary.

Appraisal rights will be available when a shareholder of the subsidiary disapproves the merger. The shareholder has the right to dissent and the corporation should pay him/her the fair market value of their stock.

Shareholders of a corporation that ceases to exist when a merger or consolidation takes place and decides to exercise his/her appraisal rights is called a dissenting shareholder.

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