A BEECHMONT CREST ONLINE GUIDE
MERGERS & ACQUISITIONS
What is a short-form merger?
A short-form merger is a merger that proceeds without a stockholder approval process. A short-form merger is permissible when the following circumstances exist:
- Shares of the company are disproportionately concentrated among a small group of shareholders who approve of the merger. (The minimal level of concentration is stipulated by state law.)
- The state corporation laws allow a short-form merger.
When these conditions exist, the majority shareholders and board of directors approve the merger without soliciting the approval of the minority shareholders.