Question

1.______________Boards of directors of both involved corporations must approve a merger plan.

2.______________Short form mergers do not require shareholder approval.

3. _____________Short form mergers typically involve a corporation and a subsidiary.

4.______________A dissolution does not necessarily end the existence of a corporation,

5.______________A hostile takeover occurs when a percentage of shareholders objects the takeover.

Answer 1

1. true

Explanation:

As per Revised Model Business Corporation Act or RMBCA, the board of directors of each involved corporation must approve the merger plan. Hence the given statement is true.

2.True

Explanation:

A short-form merger is the type of merger where a substantially owned subsidiary corporation is merged into its parent corporation. Here the parent corporation owns at least 90 percent of the outstanding shares of each class of stock of the subsidiary and the merger does not require the approval from the shareholders. Hence the given statement is true.

3.True

Explanation:

A short-form merger occurs when a substantially owned subsidiary corporation is merged into its parent corporation. Hence short-form mergers typically involve a corporation and a subsidiary.

4.False

explanation:

Dissolution is the process of terminating a corporation and it ends the legal existence of the corporation. Dissolution requires the corporation to wind up its affairs and liquidate the assets and the corporation ceases to exist once the dissolution is over. Hence the given statement is false.

5.False

Explanation:

A hostile takeover occurs when the board of directors objects the takeover and the company trying to acquire the shares directly approaches the target corporation’s shareholders for takeover. Hence the given statement is false.