Where a controlling group of majority shareholders propose fundamental changes to the corporation,a dissenting shareholder need not go along with the change.She may elect instead to have her shares bought out by the corporation at a fair price.This is referred to as

Question

Quizplus · Accepted Answer

The scenario described is indicative of the appraisal remedy, which allows a dissenting shareholder to have their shares bought out by the corporation at a fair price in the event of a proposed fundamental change to the corporation. Options A and B refer to other types of remedies available to shareholders, while option C relates to a scenario in which all shareholders must agree to a proposed change. Option E refers to a shareholder's right to purchase newly issued shares before they are offered to the public, and is not relevant to this scenario.

Where a Controlling Group of Majority Shareholders Propose Fundamental Changes