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 a fair valuation for their shares, rather than simply accepting the terms offered by the company.

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Appraisal Rights

Question 46

Multiple Choice

Appraisal rights:

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

Correct Answer: