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Simple English definitions for legal terms
right of dissent and appraisal
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A quick definition of right of dissent and appraisal:
Right of Dissent and Appraisal: This is a legal right that allows shareholders of a company to disagree with a major decision, such as a merger, and have their shares valued by a court. If the court determines that the value of the shares is fair, the company must buy back the shares from the dissenting shareholders at that price. This right is also known as the appraisal right, dissenters' right, or right of dissent and appraisal.
A more thorough explanation:
The right of dissent and appraisal, also known as the appraisal remedy, is a legal right granted to corporate shareholders who oppose certain major corporate actions, such as a merger or acquisition. This right allows shareholders to have their shares judicially appraised and to demand that the corporation buy back their shares at the appraised value.
For example, if a corporation decides to merge with another company and a shareholder disagrees with this decision, they 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.
This right is important because it allows shareholders to protect their investment in the corporation and have a say in major decisions that could affect the value of their shares. It also provides a way for shareholders to exit the corporation if they do not agree with its actions.