Asked by
Mohita Dhirwani
on Nov 21, 2024Verified
In a consolidation, the surviving corporation does not have to compensate the shareholders of the corporation that no longer exists if the compensation would damage the new corporation's bottom line.
Consolidation
The process of combining two or more entities into a single entity, often for the purpose of reducing costs and increasing efficiency.
Surviving Corporation
refers to the company that remains in existence after a merger or acquisition, absorbing the merged or acquired company.
Shareholders
Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that company.
- Comprehend the implications of shareholder rights, including dissenting shareholders' rights in mergers and consolidations.
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Learning Objectives
- Comprehend the implications of shareholder rights, including dissenting shareholders' rights in mergers and consolidations.