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Simple English definitions for legal terms
dissent and appraisal, right of
Read a random definition: secundum subjectam materiam
A quick definition of dissent and appraisal, right of:
The right of corporate shareholders to oppose certain major corporate actions, such as a merger, and have their shares evaluated by a court-appointed appraiser. This is also known as the appraisal remedy, dissenters' right, or right of dissent and appraisal. If the appraised value is agreed upon, the corporation must buy back the shares at that price.
A more thorough explanation:
Definition: The right of corporate shareholders to have their shares judicially appraised and demand that the corporation buy back their shares at the appraised value if they oppose some extraordinary corporate action, such as a merger. This is also known as the appraisal right, dissenters' right, or right of dissent and appraisal.
Example: If a corporation decides to merge with another company, a shareholder who opposes the merger can exercise their right of dissent and appraisal. They can have their shares appraised by a court and demand that the corporation buy back their shares at the appraised value.
Explanation: This means that shareholders who disagree with a major decision made by the corporation, such as a merger or acquisition, have the right to have their shares appraised and sold back to the corporation at a fair price. This protects the shareholders from being forced to remain invested in a company they no longer support.