The appraisal remedy, also referred to as the dissenters’ right or right of dissent and appraisal, grants corporate shareholders the ability to oppose significant corporate actions, such as mergers, and have their shares assessed by a court-appointed appraiser. If the appraised value is accepted, the corporation is obligated to repurchase the shares at that price.
The appraisal right, also known as the dissenters’ right or right of dissent and appraisal, grants corporate shareholders the ability to have their shares evaluated by a court and demand that the corporation repurchase their shares at the assessed value if they oppose significant corporate actions, such as a merger. For instance, if a shareholder disagrees with a merger decision, they can exercise their right of dissent and appraisal, allowing them to have their shares appraised and sold back to the corporation at a fair price. This provision safeguards shareholders from being compelled to maintain their investment in a company they no longer endorse.
The right of dissent and appraisal allows shareholders to dissent from certain corporate actions, such as mergers or acquisitions, and demand fair value for their shares.
Shareholders can exercise their right of dissent and appraisal when a significant corporate action, such as a merger or acquisition, is proposed and they believe it is not in their best interest.
Shareholders must typically follow specific procedures outlined in state corporate laws, such as filing a written notice of dissent and appraisal with the company within a certain timeframe.
After exercising their right of dissent and appraisal, shareholders may have the opportunity to negotiate with the company for a fair value for their shares. If an agreement cannot be reached, the matter may be resolved through legal proceedings.
The right of dissent and appraisal is designed to protect minority shareholders from being forced into corporate actions that may not be in their best interest, and to ensure they receive fair compensation for their shares.
In some cases, shareholders may still be able to exercise their right of dissent and appraisal even if they initially voted in favor of the corporate action, as long as they meet the necessary requirements and deadlines.
There may be limitations on the right of dissent and appraisal, such as certain corporate actions being exempt from dissent rights or specific requirements that must be met in order to exercise the right.
Fair value for dissenting shareholders’ shares may be determined based on various factors, such as the company’s financial condition, future prospects, and market value of the shares.
In most cases, shareholders who exercise their right of dissent and appraisal are not able to participate in the corporate action, such as a merger or acquisition, and must instead seek fair value for their shares.
Shareholders considering exercising their right of dissent and appraisal should seek legal advice to understand their rights and obligations, as well as the potential implications of their decision.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/dissent-and-appraisal-right-of/
- Modern Language Association (MLA):Dissent And Appraisal, Right Of. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/dissent-and-appraisal-right-of/.
- Chicago Manual of Style (CMS):Dissent And Appraisal, Right Of. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/dissent-and-appraisal-right-of/ (accessed: May 09 2024).
- American Psychological Association (APA):Dissent And Appraisal, Right Of. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/dissent-and-appraisal-right-of/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts