A shareholder who opposes a fundamental change to the corporation must make a written demand within the prescribed time period in order to be entitled to payment for his shares.

Question

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This statement is in line with the legal requirements of most jurisdictions, where shareholders who dissent from a fundamental change (such as a merger or acquisition) must send a written notice to the corporation stating their objection and their intention to be paid fair value for their shares. This is known as exercising their appraisal rights, and failure to comply with the statutory procedures may result in the loss of such rights.

A Shareholder Who Opposes a Fundamental Change to the Corporation