What Is Required in Order for a Merger to Be

question 37

Multiple Choice

What is required in order for a merger to be conducted under the short-form merger procedure?

• A) An increase of less than 20 percent in the number of outstanding shares of the surviving corporation is required.
• B) Agreement by both boards of directors to use the short-form procedure is required.
• C) Approval by the Securities and Exchange Commission to use the short-form procedure is required.
• D) Ownership by the surviving parent corporation of at least 90 percent of the shares of the nonsurviving (subsidiary) corporation prior to the merger is required.
• E) The sale,prior to the merger,by the nonsurviving corporation of all its noncash assets is required.

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