MacTech Corporation is a subsidiary of Clickon Corporation,which owns 90 percent of MacTech's shares.The management of Clickon is not happy with the way MacTech is being managed.They believe that MacTech is losing out on a huge chunk of potential business to rivals due to mismanagement.As a solution,the board of directors of Clickon approves a merger between Clickon and MacTech and they send a copy of the merger plan to MacTech's shareholders.This form of merger is called a(n):
A)semi-merger.
B)short-form merger.
C)incomplete merger.
D)half-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.

MacTech Corporation Is a Subsidiary of Clickon Corporation,which Owns 90