Fact Pattern 31-5 Lender Inc. owns more than 90 percent of the stock of Mortgage Inc .
Refer to Fact Pattern 31-5. A plan for a merger of Lender and Mortgage must be approved by the directors of
A) both corporations.
B) Lender only.
C) Mortgage only.
D) neither corporation.

Question

Quizplus · Accepted Answer

When a parent company owns more than 90% of a subsidiary, a short-form merger can occur, which typically requires approval only from the parent company's board of directors.