Appraisal rights are specifically designed to protect dissenting shareholders who do not agree with the terms of a merger, acquisition, or other major corporate action. These rights allow them to demand and receive payment for the fair value of their shares, as determined independently, rather than accepting the terms offered in the transaction.

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Appraisal Rights

Question 51

Multiple Choice

Appraisal rights:

A) belong to dissenting shareholders.
B) can be exercised by a target company any time before acquisition.
C) allow a target company to get a fair valuation of their assets before sale.
D) always give all shareholders the fair market value of their shares.

Correct Answer: