[Gaming Merger] Calvin and Daniella Each Own 5% of GamePower

question 10

Multiple Choice

[Gaming Merger] Calvin and Daniella each own 5% of GamePower, a video game design company. GamePower is seeking to merge with GameKing, and before a shareholder meeting, Calvin and Daniella email all other shareholders and corporate representatives about their disagreement with the proposed transaction. At the shareholder meeting, they vote against the merger with GameKing, but, 90% of the shareholders vote in favor of the merger. Calvin tells Daniella that it is not fair that they are forced to be part of GameKing. Daniella tells him they have no choice, so get used to it.
-What, if any, option do Calvin and Daniella have if they do not want to be part of the merged corporation?

• A) As dissenting shareholders, they cannot overrule the majority's vote.
• B) They have no options because the law does not protect shareholders from one another.
• C) They have no options because 90% of the shareholders voted in favor of the merger, thus, they cannot exercise their appraisal rights.
• D) They can exercise their appraisal rights and receive monetary compensation from the corporation for their value.
• E) Because 90% of the shareholders voted in favor of the merger, there are no other steps Calvin and Daniella can take.

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Definitions:

Racial Justice

The systematic fair treatment of people of all races that results in equitable opportunities and outcomes for everyone.

Civil Disobedience

The act of intentionally breaking or refusing to comply with laws, regulations, or commands of a government or occupying power, typically as a form of political protest.

Brown v. Board

A landmark Supreme Court case in 1954 that declared state laws establishing separate public schools for black and white students to be unconstitutional.

Supreme Court

The highest judicial body in a country, typically having the final word in legal disputes and the authority to interpret the constitution.