Appraisal Rights
/ˌæpˈreɪzəl raɪts/
Definitions
- (n.) Rights granted to dissenting shareholders to demand a judicial determination of the fair value of their shares in the event of certain corporate actions like mergers or consolidations.
The shareholders exercised their appraisal rights to receive payment reflecting the fair value of their shares after the merger.
Forms
- appraisal rights
- appraisal right
Related terms
See also
Commentary
Appraisal rights primarily protect minority shareholders by allowing a fair buyout in mergers, requiring precise procedural compliance to preserve these rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.