In a Merger Situation, What Is the Right of a Dissenting

question 14

Multiple Choice

In a merger situation, what is the right of a dissenting shareholder?

• A) to block the merger until satisfied regarding its terms.
• B) to have their shares appraised and purchased by the corporation.
• C) to enforce a consolidation instead of a merger.
• D) dissenting shareholders have no rights with respect to a merger.

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Definitions:

Articles of Organization

The legal document filed with a government body to formally establish a limited liability company (LLC).

Statutory Agent

An individual who is designated to receive service of process when a lawsuit is filed against a corporation or an LLC.

Shareholder Proposal

A recommendation or requirement submitted by a shareholder for consideration at a company's annual meeting.

Voting Stock

Voting stock refers to shares in a company that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.