Simple English definitions for legal terms
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An upstream merger is a type of merger where a subsidiary corporation is merged into its parent corporation. This means that the subsidiary no longer exists as a separate entity and all of its assets and liabilities become part of the parent corporation.
For example, if Company A owns 100% of the shares of Company B, they may decide to merge Company B into Company A. This would result in Company B no longer existing and all of its assets and liabilities becoming part of Company A.
Another example of an upstream merger is when a holding company merges with its subsidiary. This is a common strategy used by companies to simplify their corporate structure and reduce administrative costs.