Akademik

parent-subsidiary merger
USA
short-form merger; Also known as parent-subsidiary merger.
A merger between a parent and its substantially (but not necessarily wholly) owned subsidiary, with the parent company as the surviving corporation, that does not require approval of the stockholders of the subsidiary. The requirements of a short-form merger are dictated by state statute. In Delaware and New York, the parent must own at least 90% of the outstanding stock of the subsidiary to avoid the stockholder vote requirement.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.