{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-719.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-719.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-719.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-719.1.html"}],"law_id":69231,"edition_id":1,"section_id":69231,"structure_id":16429,"section_number":"13.1-719.1","catch_line":"Formation of a holding company","history":"2006, c. 363; 2015, c. 611; 2019, c. 734.","full_text":"A\n\nAs used in this section:\n\t\t\t“Constituent corporation” means a corporation which, from the incorporation of the holding company until consummation of a merger governed by this section, was at all times the sole direct parent of the holding company and whose shares are converted into shares of the holding company in such merger.\n\t\t\t“Holding company” means a corporation which, from its incorporation until consummation of a merger governed by this section, was at all times a direct wholly owned subsidiary of the constituent corporation and whose shares are issued in such merger in exchange for the shares of the constituent corporation.\n\t\t\t“Indirect subsidiary” means a corporation which, from its incorporation until consummation of a merger governed by this section, was at all times a direct wholly owned subsidiary of the holding company.B\n\nUnless its articles of incorporation otherwise provide, a constituent corporation may merge an indirect subsidiary into itself, or may merge itself into an indirect subsidiary, without the approval of the shareholders of the constituent corporation or the board of directors or shareholders of the indirect subsidiary, if:1\n\nSuch constituent corporation and indirect subsidiary are the only parties to the merger;2\n\nThe provisions in the articles of incorporation and bylaws of the constituent corporation and the holding company immediately before the effective time of the merger are identical as they relate to:\n\t\t\t\ta. The designation, number, and par value of each class and series of shares that are authorized, and the preferences, rights, and limitations of each class and series of shares;\n\t\t\t\tb. Any terms of the shares that are dependent upon facts objectively ascertainable outside of the articles of incorporation or that vary among the holders of the same class or series;\n\t\t\t\tc. The preemptive right of the shareholders to acquire unissued shares, provided, however, that if the constituent corporation was formed on or before December 31, 2005, and its articles of incorporation do not deny the preemptive right of its shareholders, and the holding company was formed after December 31, 2005, the articles of incorporation of the holding company must provide that its shareholders have the preemptive right to acquire the holding company’s unissued shares to the same extent the shareholders of the constituent corporation had a preemptive right to acquire unissued shares of the constituent corporation;\n\t\t\t\td. The definition, limitation, and regulation of the powers of the corporation, its directors, and shareholders;\n\t\t\t\te. The management of the business and regulation of the affairs of the corporation; and\n\t\t\t\tf. For purposes of subdivision 2 c, shares include any warrants, rights, or options to acquire any such shares or any security or other obligation of the corporation convertible into any such shares or into warrants, rights, or options to acquire any such shares;3\n\nEach share or fraction of a share of the constituent corporation outstanding immediately prior to the effective time of the merger is converted in the merger into a share or equal fraction of a share of the holding company having the same preferences, rights, and limitations as the share or fraction of a share of the constituent corporation being converted in the merger;4\n\nEach right to acquire shares of the constituent corporation outstanding immediately prior to the effective time of the merger is converted in the merger into a right to acquire shares of the holding company having the same preferences, rights, and limitations as the right to acquire shares of the constituent corporation being converted in the merger; and5\n\nThe directors of the constituent corporation become or remain the directors of the holding company upon the effective time of the merger.C\n\nNotwithstanding any provision in this chapter to the contrary, a plan of merger adopted pursuant to this section may include:1\n\nIf the indirect subsidiary is the survivor:\n\t\t\t\ta. An amendment or restatement of the indirect subsidiary’s articles of incorporation to change the name of the indirect subsidiary to a name that satisfies the requirements of this chapter; and\n\t\t\t\tb. A provision that the shares of the holding company into which the shares of the constituent corporation are converted in the merger may be represented by the share certificates that previously represented shares of the constituent corporation, if the holding company adopts the former name of the constituent corporation by filing articles of amendment that are effective immediately following consummation of the merger; and2\n\nIf the constituent corporation is the survivor:\n\t\t\t\ta. An amendment or restatement of the constituent corporation’s articles of incorporation:1\n\nTo change the name of the constituent corporation to a name that satisfies the requirements of this chapter;2\n\nTo delete any existing provisions that authorize the issuance of or relate to multiple classes or series of shares and to add one or more provisions that authorize a new, single class of shares with unlimited voting rights in lieu thereof;3\n\nTo delete any existing provision that provides for staggering the terms of directors pursuant to § 13.1-678; or4\n\nTo make any change permitted by § 13.1-706;\n\t\t\t\t\tb. A provision that one or more of the directors of the constituent corporation immediately prior to the effective time of the merger will no longer be directors of the constituent corporation immediately following the effective time of the merger; and\n\t\t\t\t\tc. A provision that the shares of the holding company into which the shares of the constituent corporation are converted in the merger may be represented by the share certificates that previously represented shares of the constituent corporation, if the constituent corporation adopts a new name in the merger that is distinguishable upon the records of the Commission and if the board of directors of the holding company, acting pursuant to § 13.1-706, adopts the former name of the constituent corporation by filing articles of amendment that are effective immediately following consummation of the merger.D\n\nArticles of merger filed with respect to a merger authorized by this section shall include a statement that the plan of merger did not require approval by the shareholders of the constituent corporation or by the board of directors or shareholders of the indirect subsidiary because the merger was authorized by this section and that the conditions specified in subsection B have been satisfied.E\n\nExcept as provided in this section, a merger governed by this section shall comply with the provisions of this article applicable to mergers generally.F\n\nFrom and after the effective time of a merger adopted by a constituent corporation pursuant to this section:1\n\nTo the extent the restrictions of § 13.1-725.1 or 13.1-728.2 applied to the constituent corporation and its shareholders immediately prior to the merger, such restrictions shall apply to the holding company and its shareholders immediately after the effective time of the merger as though it were the constituent corporation, and all shares of the holding company acquired in the merger shall for purposes of §§ 13.1-725.1 and 13.1-728.2 be deemed to have been acquired at the time that the shares of the constituent corporation converted in the merger were acquired, and provided further that:\n\t\t\t\ta. Any shareholder who immediately prior to the effective time of the merger was not an interested shareholder within the meaning of § 13.1-725 shall not solely by reason of the merger become an interested shareholder of the holding company; and\n\t\t\t\tb. Any shares which immediately prior to the effective time of the merger were not interested shares within the meaning of § 13.1-728.1 shall not solely by reason of the merger become interested shares of the holding company.2\n\nTo the extent a shareholder of the constituent corporation immediately prior to the effective time of the merger had standing to institute or maintain a derivative proceeding on behalf of the constituent corporation, consummation of the merger shall not be deemed to limit or extinguish such standing.3\n\nTo the extent a voting trust authorized by § 13.1-670, a voting agreement authorized by § 13.1-671, a shareholder agreement authorized by § 13.1-671.1, a proxy or any similar agreement or instrument applied to the constituent corporation, its shares or its shareholders immediately prior to the merger, such voting trust, voting agreement, shareholder agreement, proxy or other agreement or instrument shall apply to the holding company and its shares and shareholders immediately following consummation of the merger to the same extent that it applied to the constituent corporation and its shares and shareholders immediately prior to consummation of the merger.","order_by":null,"text":{"0":{"id":250481,"text":"As used in this section:\n\t\t\t“Constituent corporation” means a corporation which, from the incorporation of the holding company until consummation of a merger governed by this section, was at all times the sole direct parent of the holding company and whose shares are converted into shares of the holding company in such merger.\n\t\t\t“Holding company” means a corporation which, from its incorporation until consummation of a merger governed by this section, was at all times a direct wholly owned subsidiary of the constituent corporation and whose shares are issued in such merger in exchange for the shares of the constituent corporation.\n\t\t\t“Indirect subsidiary” means a corporation which, from its incorporation until consummation of a merger governed by this section, was at all times a direct wholly owned subsidiary of the holding company.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":250482,"text":"Unless its articles of incorporation otherwise provide, a constituent corporation may merge an indirect subsidiary into itself, or may merge itself into an indirect subsidiary, without the approval of the shareholders of the constituent corporation or the board of directors or shareholders of the indirect subsidiary, if:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":250483,"text":"Such constituent corporation and indirect subsidiary are the only parties to the merger;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":250484,"text":"The provisions in the articles of incorporation and bylaws of the constituent corporation and the holding company immediately before the effective time of the merger are identical as they relate to:\n\t\t\t\ta. The designation, number, and par value of each class and series of shares that are authorized, and the preferences, rights, and limitations of each class and series of shares;\n\t\t\t\tb. Any terms of the shares that are dependent upon facts objectively ascertainable outside of the articles of incorporation or that vary among the holders of the same class or series;\n\t\t\t\tc. The preemptive right of the shareholders to acquire unissued shares, provided, however, that if the constituent corporation was formed on or before December 31, 2005, and its articles of incorporation do not deny the preemptive right of its shareholders, and the holding company was formed after December 31, 2005, the articles of incorporation of the holding company must provide that its shareholders have the preemptive right to acquire the holding company’s unissued shares to the same extent the shareholders of the constituent corporation had a preemptive right to acquire unissued shares of the constituent corporation;\n\t\t\t\td. The definition, limitation, and regulation of the powers of the corporation, its directors, and shareholders;\n\t\t\t\te. The management of the business and regulation of the affairs of the corporation; and\n\t\t\t\tf. For purposes of subdivision 2 c, shares include any warrants, rights, or options to acquire any such shares or any security or other obligation of the corporation convertible into any such shares or into warrants, rights, or options to acquire any such shares;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":250485,"text":"Each share or fraction of a share of the constituent corporation outstanding immediately prior to the effective time of the merger is converted in the merger into a share or equal fraction of a share of the holding company having the same preferences, rights, and limitations as the share or fraction of a share of the constituent corporation being converted in the merger;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":250486,"text":"Each right to acquire shares of the constituent corporation outstanding immediately prior to the effective time of the merger is converted in the merger into a right to acquire shares of the holding company having the same preferences, rights, and limitations as the right to acquire shares of the constituent corporation being converted in the merger; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":250487,"text":"The directors of the constituent corporation become or remain the directors of the holding company upon the effective time of the merger.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"7":{"id":250488,"text":"Notwithstanding any provision in this chapter to the contrary, a plan of merger adopted pursuant to this section may include:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"C1"},"8":{"id":250489,"text":"If the indirect subsidiary is the survivor:\n\t\t\t\ta. An amendment or restatement of the indirect subsidiary’s articles of incorporation to change the name of the indirect subsidiary to a name that satisfies the requirements of this chapter; and\n\t\t\t\tb. A provision that the shares of the holding company into which the shares of the constituent corporation are converted in the merger may be represented by the share certificates that previously represented shares of the constituent corporation, if the holding company adopts the former name of the constituent corporation by filing articles of amendment that are effective immediately following consummation of the merger; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":250490,"text":"If the constituent corporation is the survivor:\n\t\t\t\ta. An amendment or restatement of the constituent corporation’s articles of incorporation:","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C21"},"10":{"id":250491,"text":"To change the name of the constituent corporation to a name that satisfies the requirements of this chapter;","type":"section","prefixes":["C","2","1"],"prefix":"1","entire_prefix":"C21","prefix_anchor":"C21","level":3,"prior_prefix":"C2","next_prefix":"C22"},"11":{"id":250492,"text":"To delete any existing provisions that authorize the issuance of or relate to multiple classes or series of shares and to add one or more provisions that authorize a new, single class of shares with unlimited voting rights in lieu thereof;","type":"section","prefixes":["C","2","2"],"prefix":"2","entire_prefix":"C22","prefix_anchor":"C22","level":3,"prior_prefix":"C21","next_prefix":"C23"},"12":{"id":250493,"text":"To delete any existing provision that provides for staggering the terms of directors pursuant to § 13.1-678; or","type":"section","prefixes":["C","2","3"],"prefix":"3","entire_prefix":"C23","prefix_anchor":"C23","level":3,"prior_prefix":"C22","next_prefix":"C24"},"13":{"id":250494,"text":"To make any change permitted by § 13.1-706;\n\t\t\t\t\tb. A provision that one or more of the directors of the constituent corporation immediately prior to the effective time of the merger will no longer be directors of the constituent corporation immediately following the effective time of the merger; and\n\t\t\t\t\tc. A provision that the shares of the holding company into which the shares of the constituent corporation are converted in the merger may be represented by the share certificates that previously represented shares of the constituent corporation, if the constituent corporation adopts a new name in the merger that is distinguishable upon the records of the Commission and if the board of directors of the holding company, acting pursuant to § 13.1-706, adopts the former name of the constituent corporation by filing articles of amendment that are effective immediately following consummation of the merger.","type":"section","prefixes":["C","2","4"],"prefix":"4","entire_prefix":"C24","prefix_anchor":"C24","level":3,"prior_prefix":"C23","next_prefix":"D"},"14":{"id":250495,"text":"Articles of merger filed with respect to a merger authorized by this section shall include a statement that the plan of merger did not require approval by the shareholders of the constituent corporation or by the board of directors or shareholders of the indirect subsidiary because the merger was authorized by this section and that the conditions specified in subsection B have been satisfied.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C24","next_prefix":"E"},"15":{"id":250496,"text":"Except as provided in this section, a merger governed by this section shall comply with the provisions of this article applicable to mergers generally.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"16":{"id":250497,"text":"From and after the effective time of a merger adopted by a constituent corporation pursuant to this section:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F1"},"17":{"id":250498,"text":"To the extent the restrictions of § 13.1-725.1 or 13.1-728.2 applied to the constituent corporation and its shareholders immediately prior to the merger, such restrictions shall apply to the holding company and its shareholders immediately after the effective time of the merger as though it were the constituent corporation, and all shares of the holding company acquired in the merger shall for purposes of §§ 13.1-725.1 and 13.1-728.2 be deemed to have been acquired at the time that the shares of the constituent corporation converted in the merger were acquired, and provided further that:\n\t\t\t\ta. Any shareholder who immediately prior to the effective time of the merger was not an interested shareholder within the meaning of § 13.1-725 shall not solely by reason of the merger become an interested shareholder of the holding company; and\n\t\t\t\tb. Any shares which immediately prior to the effective time of the merger were not interested shares within the meaning of § 13.1-728.1 shall not solely by reason of the merger become interested shares of the holding company.","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"18":{"id":250499,"text":"To the extent a shareholder of the constituent corporation immediately prior to the effective time of the merger had standing to institute or maintain a derivative proceeding on behalf of the constituent corporation, consummation of the merger shall not be deemed to limit or extinguish such standing.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"F3"},"19":{"id":250500,"text":"To the extent a voting trust authorized by § 13.1-670, a voting agreement authorized by § 13.1-671, a shareholder agreement authorized by § 13.1-671.1, a proxy or any similar agreement or instrument applied to the constituent corporation, its shares or its shareholders immediately prior to the merger, such voting trust, voting agreement, shareholder agreement, proxy or other agreement or instrument shall apply to the holding company and its shares and shareholders immediately following consummation of the merger to the same extent that it applied to the constituent corporation and its shares and shareholders immediately prior to consummation of the merger.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2"}},"ancestry":[{"id":16429,"edition_id":1,"name":"Mergers and Share Exchanges","identifier":"12","label":"article","depth":3,"order_by":1,"parent_id":12983,"metadata":{},"date_created":"2026-06-26 04:17:39","date_modified":"2026-06-26 04:17:39","permalink":{"id":150357,"object_type":"structure","relational_id":16429,"identifier":"12","token":"13.1\/9\/12","url":"\/13.1\/9\/12\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12983,"edition_id":1,"name":"Virginia Stock Corporation Act","identifier":"9","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":150163,"object_type":"structure","relational_id":12983,"identifier":"9","token":"13.1\/9","url":"\/13.1\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85057,"structure_id":16429,"section_number":"13.1-715.1","catch_line":"Definitions","url":"\/13.1-715.1\/","token":"13.1\/9\/12\/13.1-715.1","metadata":false},{"id":73648,"structure_id":16429,"section_number":"13.1-716","catch_line":"Merger","url":"\/13.1-716\/","token":"13.1\/9\/12\/13.1-716","metadata":false},{"id":82947,"structure_id":16429,"section_number":"13.1-717","catch_line":"Share exchange","url":"\/13.1-717\/","token":"13.1\/9\/12\/13.1-717","metadata":false},{"id":78280,"structure_id":16429,"section_number":"13.1-718","catch_line":"Action on a plan of merger or share exchange","url":"\/13.1-718\/","token":"13.1\/9\/12\/13.1-718","metadata":false},{"id":76745,"structure_id":16429,"section_number":"13.1-719","catch_line":"Merger between parent and subsidiary or between subsidiaries","url":"\/13.1-719\/","token":"13.1\/9\/12\/13.1-719","metadata":false},{"id":69231,"structure_id":16429,"section_number":"13.1-719.1","catch_line":"Formation of a holding company","url":"\/13.1-719.1\/","token":"13.1\/9\/12\/13.1-719.1","metadata":false},{"id":68388,"structure_id":16429,"section_number":"13.1-720","catch_line":"Articles of merger or share exchange","url":"\/13.1-720\/","token":"13.1\/9\/12\/13.1-720","metadata":false},{"id":71539,"structure_id":16429,"section_number":"13.1-721","catch_line":"Effect of merger or share exchange","url":"\/13.1-721\/","token":"13.1\/9\/12\/13.1-721","metadata":false},{"id":76924,"structure_id":16429,"section_number":"13.1-721.1","catch_line":"Abandonment of a merger or share exchange","url":"\/13.1-721.1\/","token":"13.1\/9\/12\/13.1-721.1","metadata":false}],"previous_section":{"id":76745,"structure_id":16429,"section_number":"13.1-719","catch_line":"Merger between parent and subsidiary or between subsidiaries","url":"\/13.1-719\/","token":"13.1\/9\/12\/13.1-719","metadata":false},"next_section":{"id":68388,"structure_id":16429,"section_number":"13.1-720","catch_line":"Articles of merger or share exchange","url":"\/13.1-720\/","token":"13.1\/9\/12\/13.1-720","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-719.1\/","history_text":"

This law was first created in 2006. The record of its establishment is cataloged in chapter 363<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2015, chapter 611<\/a>; in 2019, chapter 734<\/a>.<\/p>","references":[{"id":55616,"section_number":"13.1-706","catch_line":"Amendment of articles of incorporation by the board of directors","order_by":null,"url":"\/13.1-706\/"},{"id":78280,"section_number":"13.1-718","catch_line":"Action on a plan of merger or share exchange","order_by":null,"url":"\/13.1-718\/"},{"id":68388,"section_number":"13.1-720","catch_line":"Articles of merger or share exchange","order_by":null,"url":"\/13.1-720\/"},{"id":77282,"section_number":"13.1-729","catch_line":"Definitions","order_by":null,"url":"\/13.1-729\/"}],"refers_to":[{"id":86769,"section_number":"13.1-670","catch_line":"Voting trusts","order_by":null,"url":"\/13.1-670\/"},{"id":62883,"section_number":"13.1-671","catch_line":"Voting agreements","order_by":null,"url":"\/13.1-671\/"},{"id":86810,"section_number":"13.1-671.1","catch_line":"Shareholder agreements","order_by":null,"url":"\/13.1-671.1\/"},{"id":71464,"section_number":"13.1-678","catch_line":"Staggered terms for directors","order_by":null,"url":"\/13.1-678\/"},{"id":55616,"section_number":"13.1-706","catch_line":"Amendment of articles of incorporation by the board of directors","order_by":null,"url":"\/13.1-706\/"},{"id":60304,"section_number":"13.1-725","catch_line":"Definitions","order_by":null,"url":"\/13.1-725\/"},{"id":71945,"section_number":"13.1-725.1","catch_line":"Affiliated transactions","order_by":null,"url":"\/13.1-725.1\/"},{"id":85315,"section_number":"13.1-728.1","catch_line":"Definitions","order_by":null,"url":"\/13.1-728.1\/"},{"id":61101,"section_number":"13.1-728.2","catch_line":"Application","order_by":null,"url":"\/13.1-728.2\/"}],"permalink":{"id":150379,"object_type":"law","relational_id":69231,"identifier":"13.1-719.1","token":"13.1\/9\/12\/13.1-719.1","url":"\/13.1-719.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-719.1\/","token":"13.1\/9\/12\/13.1-719.1","dublin_core":{"Title":"Formation of a holding company","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-719.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Constituent corporation<\/span>” means a corporation which, from the incorporation of the holding company<\/span> until consummation of a merger<\/span> governed by this section, was at all times the sole direct parent of the holding company<\/span> and whose shares<\/span> are converted into shares<\/span> of the holding company<\/span> in such merger<\/span>.\n\t\t\t“Holding company<\/span>” means a corporation which, from its incorporation until consummation of a merger<\/span> governed by this section, was at all times a direct wholly owned subsidiary of the constituent corporation<\/span> and whose shares<\/span> are issued in such merger<\/span> in exchange for the shares<\/span> of the constituent corporation<\/span>.\n\t\t\t“Indirect subsidiary<\/span>” means a corporation which, from its incorporation until consummation of a merger<\/span> governed by this section, was at all times a direct wholly owned subsidiary of the holding company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Unless its articles of incorporation<\/span> otherwise provide, a constituent corporation<\/span> may merge an indirect subsidiary<\/span> into itself, or may merge itself into an indirect subsidiary<\/span>, without the approval of the shareholders<\/span> of the constituent corporation<\/span> or the board of directors or shareholders<\/span> of the indirect subsidiary<\/span>, if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Such constituent corporation<\/span> and indirect subsidiary<\/span> are the only parties to the merger<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The provisions in the articles of incorporation<\/span> and bylaws of the constituent corporation<\/span> and the holding company<\/span> immediately before the effective time of the merger<\/span> are identical as they relate to:\n\t\t\t\ta. The designation, number, and par value of each class and series of shares<\/span> that are authorized, and the preferences, rights, and limitations of each class and series of shares<\/span>;\n\t\t\t\tb. Any terms of the shares<\/span> that are dependent upon facts<\/span> objectively ascertainable outside of the articles of incorporation<\/span> or that vary among the holders of the same class or series;\n\t\t\t\tc. The preemptive right of the shareholders<\/span> to acquire unissued shares<\/span>, provided, however, that if the constituent corporation<\/span> was formed on or before December 31, 2005, and its articles of incorporation<\/span> do not deny the preemptive right of its shareholders<\/span>, and the holding company<\/span> was formed after December 31, 2005, the articles of incorporation<\/span> of the holding company<\/span> must provide that its shareholders<\/span> have the preemptive right to acquire the holding company<\/span>’s unissued shares<\/span> to the same extent the shareholders<\/span> of the constituent corporation<\/span> had a preemptive right to acquire unissued shares<\/span> of the constituent corporation<\/span>;\n\t\t\t\td. The definition, limitation, and regulation of the powers of the corporation, its directors, and shareholders<\/span>;\n\t\t\t\te. The management of the business and regulation of the affairs of the corporation; and\n\t\t\t\tf. For purposes of subdivision 2 c, shares<\/span> include any warrants, rights, or options to acquire any such shares<\/span> or any security or other obligation of the corporation convertible into any such shares<\/span> or into warrants, rights, or options to acquire any such shares<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Each share or fraction of a share of the constituent corporation<\/span> outstanding immediately prior to the effective time of the merger<\/span> is converted in the merger<\/span> into a share or equal fraction of a share of the holding company<\/span> having the same preferences, rights, and limitations as the share or fraction of a share of the constituent corporation<\/span> being converted in the merger<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Each right to acquire shares<\/span> of the constituent corporation<\/span> outstanding immediately prior to the effective time of the merger<\/span> is converted in the merger<\/span> into a right to acquire shares<\/span> of the holding company<\/span> having the same preferences, rights, and limitations as the right to acquire shares<\/span> of the constituent corporation<\/span> being converted in the merger<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The directors of the constituent corporation<\/span> become or remain the directors of the holding company<\/span> upon the effective time of the merger<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding any provision in this chapter to the contrary, a plan of merger<\/span> adopted pursuant to this section may include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the indirect subsidiary<\/span> is the survivor<\/span>:\n\t\t\t\ta. An amendment or restatement of the indirect subsidiary<\/span>’s articles of incorporation<\/span> to change the name of the indirect subsidiary<\/span> to a name that satisfies the requirements of this chapter; and\n\t\t\t\tb. A provision that the shares<\/span> of the holding company<\/span> into which the shares<\/span> of the constituent corporation<\/span> are converted in the merger<\/span> may be represented by the share certificates that previously represented shares<\/span> of the constituent corporation<\/span>, if the holding company<\/span> adopts the former name of the constituent corporation<\/span> by filing articles of amendment that are effective immediately following consummation of the merger<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the constituent corporation<\/span> is the survivor<\/span>:\n\t\t\t\ta. An amendment or restatement of the constituent corporation<\/span>’s articles of incorporation<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To change the name of the constituent corporation<\/span> to a name that satisfies the requirements of this chapter; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To delete any existing provisions that authorize the issuance of or relate to multiple classes or series of shares<\/span> and to add one or more provisions that authorize a new, single class of shares<\/span> with unlimited voting rights in lieu thereof; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To delete any existing provision that provides for staggering the terms of directors pursuant to § 13.1-678<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> To make any change permitted by § 13.1-706<\/a>;\n\t\t\t\t\tb. A provision that one or more of the directors of the constituent corporation<\/span> immediately prior to the effective time of the merger<\/span> will no longer be directors of the constituent corporation<\/span> immediately following the effective time of the merger<\/span>; and\n\t\t\t\t\tc. A provision that the shares<\/span> of the holding company<\/span> into which the shares<\/span> of the constituent corporation<\/span> are converted in the merger<\/span> may be represented by the share certificates that previously represented shares<\/span> of the constituent corporation<\/span>, if the constituent corporation<\/span> adopts a new name in the merger<\/span> that is distinguishable upon the records of the Commission<\/span> and if the board of directors of the holding company<\/span>, acting pursuant to § 13.1-706<\/a>, adopts the former name of the constituent corporation<\/span> by filing articles of amendment that are effective immediately following consummation of the merger<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Articles of merger<\/span> filed with respect to a merger<\/span> authorized by this section shall include a statement that the plan of merger<\/span> did not require approval by the shareholders<\/span> of the constituent corporation<\/span> or by the board of directors or shareholders<\/span> of the indirect subsidiary<\/span> because the merger<\/span> was authorized by this section and that the conditions specified in subsection B have been satisfied. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Except as provided in this section, a merger<\/span> governed by this section shall comply with the provisions of this article applicable to mergers<\/span> generally. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> From and after the effective time of a merger<\/span> adopted by a constituent corporation<\/span> pursuant to this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To the extent the restrictions of § 13.1-725.1<\/a> or 13.1-728.2<\/a> applied to the constituent corporation<\/span> and its shareholders<\/span> immediately prior to the merger<\/span>, such restrictions shall apply to the holding company<\/span> and its shareholders<\/span> immediately after the effective time of the merger<\/span> as though it were the constituent corporation<\/span>, and all shares<\/span> of the holding company<\/span> acquired in the merger<\/span> shall for purposes of §§ 13.1-725.1<\/a> and 13.1-728.2<\/a> be deemed to have been acquired at the time that the shares<\/span> of the constituent corporation<\/span> converted in the merger<\/span> were acquired, and provided further that:\n\t\t\t\ta. Any shareholder<\/span> who immediately prior to the effective time of the merger<\/span> was not an interested shareholder<\/span> within the meaning of § 13.1-725<\/a> shall not solely by reason of the merger<\/span> become an interested shareholder<\/span> of the holding company<\/span>; and\n\t\t\t\tb. Any shares<\/span> which immediately prior to the effective time of the merger<\/span> were not interested shares<\/span> within the meaning of § 13.1-728.1<\/a> shall not solely by reason of the merger<\/span> become interested shares<\/span> of the holding company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To the extent a shareholder<\/span> of the constituent corporation<\/span> immediately prior to the effective time of the merger<\/span> had standing to institute or maintain a derivative proceeding<\/span> on behalf of the constituent corporation<\/span>, consummation of the merger<\/span> shall not be deemed to limit or extinguish such standing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To the extent a voting trust authorized by § 13.1-670<\/a>, a voting agreement authorized by § 13.1-671<\/a>, a shareholder<\/span> agreement authorized by § 13.1-671.1<\/a>, a proxy or any similar agreement or instrument applied to the constituent corporation<\/span>, its shares<\/span> or its shareholders<\/span> immediately prior to the merger<\/span>, such voting trust, voting agreement, shareholder<\/span> agreement, proxy or other agreement or instrument shall apply to the holding company<\/span> and its shares<\/span> and shareholders<\/span> immediately following consummation of the merger<\/span> to the same extent that it applied to the constituent corporation<\/span> and its shares<\/span> and shareholders<\/span> immediately prior to consummation of the merger<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFORMATION OF A HOLDING COMPANY (\u00a7 13.1-719.1)\n\nA. As used in this section:\n\t\t\t“Constituent corporation” means a corporation which, from the\nincorporation of the holding company until consummation of a merger governed by\nthis section, was at all times the sole direct parent of the holding company and\nwhose shares are converted into shares of the holding company in such merger.\n\t\t\t“Holding company” means a corporation which, from its\nincorporation until consummation of a merger governed by this section, was at\nall times a direct wholly owned subsidiary of the constituent corporation and\nwhose shares are issued in such merger in exchange for the shares of the\nconstituent corporation.\n\t\t\t“Indirect subsidiary” means a corporation which, from its\nincorporation until consummation of a merger governed by this section, was at\nall times a direct wholly owned subsidiary of the holding company.\n\nB. Unless its articles of incorporation otherwise provide, a constituent\ncorporation may merge an indirect subsidiary into itself, or may merge itself\ninto an indirect subsidiary, without the approval of the shareholders of the\nconstituent corporation or the board of directors or shareholders of the\nindirect subsidiary, if:\n\n 1. Such constituent corporation and indirect subsidiary are the only parties\n to the merger;\n\n 2. The provisions in the articles of incorporation and bylaws of the\n constituent corporation and the holding company immediately before the\n effective time of the merger are identical as they relate to:\n \t\t\t\ta. The designation, number, and par value of each class and series of\n shares that are authorized, and the preferences, rights, and limitations of\n each class and series of shares;\n \t\t\t\tb. Any terms of the shares that are dependent upon facts objectively\n ascertainable outside of the articles of incorporation or that vary among the\n holders of the same class or series;\n \t\t\t\tc. The preemptive right of the shareholders to acquire unissued shares,\n provided, however, that if the constituent corporation was formed on or before\n December 31, 2005, and its articles of incorporation do not deny the\n preemptive right of its shareholders, and the holding company was formed after\n December 31, 2005, the articles of incorporation of the holding company must\n provide that its shareholders have the preemptive right to acquire the holding\n company’s unissued shares to the same extent the shareholders of the\n constituent corporation had a preemptive right to acquire unissued shares of\n the constituent corporation;\n \t\t\t\td. The definition, limitation, and regulation of the powers of the\n corporation, its directors, and shareholders;\n \t\t\t\te. The management of the business and regulation of the affairs of the\n corporation; and\n \t\t\t\tf. For purposes of subdivision 2 c, shares include any warrants, rights,\n or options to acquire any such shares or any security or other obligation of\n the corporation convertible into any such shares or into warrants, rights, or\n options to acquire any such shares;\n\n 3. Each share or fraction of a share of the constituent corporation\n outstanding immediately prior to the effective time of the merger is converted\n in the merger into a share or equal fraction of a share of the holding company\n having the same preferences, rights, and limitations as the share or fraction\n of a share of the constituent corporation being converted in the merger;\n\n 4. Each right to acquire shares of the constituent corporation outstanding\n immediately prior to the effective time of the merger is converted in the\n merger into a right to acquire shares of the holding company having the same\n preferences, rights, and limitations as the right to acquire shares of the\n constituent corporation being converted in the merger; and\n\n 5. The directors of the constituent corporation become or remain the directors\n of the holding company upon the effective time of the merger.\n\nC. Notwithstanding any provision in this chapter to the contrary, a plan of\nmerger adopted pursuant to this section may include:\n\n 1. If the indirect subsidiary is the survivor:\n \t\t\t\ta. An amendment or restatement of the indirect subsidiary’s articles\n of incorporation to change the name of the indirect subsidiary to a name that\n satisfies the requirements of this chapter; and\n \t\t\t\tb. A provision that the shares of the holding company into which the\n shares of the constituent corporation are converted in the merger may be\n represented by the share certificates that previously represented shares of\n the constituent corporation, if the holding company adopts the former name of\n the constituent corporation by filing articles of amendment that are effective\n immediately following consummation of the merger; and\n\n 2. If the constituent corporation is the survivor:\n \t\t\t\ta. An amendment or restatement of the constituent corporation’s\n articles of incorporation:\n\n 1. To change the name of the constituent corporation to a name that\n satisfies the requirements of this chapter;\n\n 2. To delete any existing provisions that authorize the issuance of or\n relate to multiple classes or series of shares and to add one or more\n provisions that authorize a new, single class of shares with unlimited\n voting rights in lieu thereof;\n\n 3. To delete any existing provision that provides for staggering the terms\n of directors pursuant to § 13.1-678; or\n\n 4. To make any change permitted by § 13.1-706;\n \t\t\t\t\tb. A provision that one or more of the directors of the constituent\n corporation immediately prior to the effective time of the merger will no\n longer be directors of the constituent corporation immediately following the\n effective time of the merger; and\n \t\t\t\t\tc. A provision that the shares of the holding company into which the\n shares of the constituent corporation are converted in the merger may be\n represented by the share certificates that previously represented shares of\n the constituent corporation, if the constituent corporation adopts a new\n name in the merger that is distinguishable upon the records of the\n Commission and if the board of directors of the holding company, acting\n pursuant to § 13.1-706, adopts the former name of the constituent\n corporation by filing articles of amendment that are effective immediately\n following consummation of the merger.\n\nD. Articles of merger filed with respect to a merger authorized by this section\nshall include a statement that the plan of merger did not require approval by\nthe shareholders of the constituent corporation or by the board of directors or\nshareholders of the indirect subsidiary because the merger was authorized by\nthis section and that the conditions specified in subsection B have been\nsatisfied.\n\nE. Except as provided in this section, a merger governed by this section shall\ncomply with the provisions of this article applicable to mergers generally.\n\nF. From and after the effective time of a merger adopted by a constituent\ncorporation pursuant to this section:\n\n 1. To the extent the restrictions of § 13.1-725.1 or 13.1-728.2 applied\n to the constituent corporation and its shareholders immediately prior to the\n merger, such restrictions shall apply to the holding company and its\n shareholders immediately after the effective time of the merger as though it\n were the constituent corporation, and all shares of the holding company\n acquired in the merger shall for purposes of §§ 13.1-725.1 and\n 13.1-728.2 be deemed to have been acquired at the time that the shares of the\n constituent corporation converted in the merger were acquired, and provided\n further that:\n \t\t\t\ta. Any shareholder who immediately prior to the effective time of the\n merger was not an interested shareholder within the meaning of § 13.1-725\n shall not solely by reason of the merger become an interested shareholder of\n the holding company; and\n \t\t\t\tb. Any shares which immediately prior to the effective time of the merger\n were not interested shares within the meaning of § 13.1-728.1 shall not\n solely by reason of the merger become interested shares of the holding\n company.\n\n 2. To the extent a shareholder of the constituent corporation immediately\n prior to the effective time of the merger had standing to institute or\n maintain a derivative proceeding on behalf of the constituent corporation,\n consummation of the merger shall not be deemed to limit or extinguish such\n standing.\n\n 3. To the extent a voting trust authorized by § 13.1-670, a voting\n agreement authorized by § 13.1-671, a shareholder agreement authorized by\n § 13.1-671.1, a proxy or any similar agreement or instrument applied to\n the constituent corporation, its shares or its shareholders immediately prior\n to the merger, such voting trust, voting agreement, shareholder agreement,\n proxy or other agreement or instrument shall apply to the holding company and\n its shares and shareholders immediately following consummation of the merger\n to the same extent that it applied to the constituent corporation and its\n shares and shareholders immediately prior to consummation of the merger.\n\nHISTORY: 2006, c. 363; 2015, c. 611; 2019, c. 734.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}