Simple English definitions for legal terms
Read a random definition: FLRA
Dissenters' Right: A legal right given to shareholders of a company who disagree with a major decision, such as a merger, to have their shares evaluated by a court and demand that the company buy back their shares at the evaluated value. This right is also known as the appraisal remedy, appraisal right, right of dissent and appraisal.
Dissenters' right is a legal term that refers to the right of corporate shareholders who oppose some extraordinary corporate action, such as a merger, to have their shares judicially appraised and to demand that the corporation buy back their shares at the appraised value. This is also known as the appraisal remedy.
For example, if a company decides to merge with another company, some shareholders may not agree with this decision. In such a case, those shareholders can exercise their dissenters' right and demand that the company buy back their shares at a fair price.
The dissenters' right is a way for shareholders to protect their interests and ensure that they are not forced to accept a decision that they do not agree with. It gives them the option to exit the company and receive a fair value for their shares.