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

question 71

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.
-Assuming Calvin and Daniella can exercise their appraisal rights in this situation, what must they do?

• A) They must issue a statement demanding the merger be declared null and void.
• B) They must issue a statement demanding the vote be re-cast.
• C) They must issue a statement demanding adequate compensation for their shares.
• D) They must file a demand with a court for fair market value for their shares.
• E) They must file a notice with the Secretary of State objecting to the merger and demanding fair market value for their shares.

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Definitions:

High Demand

A situation in which the desire for a product or service exceeds the available supply, often leading to higher prices.

Low Demand

A situation where the desire or need for a particular product or service is less than the supply available.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and very easy entry and exit from the market.

Imperfect Competition

Market structures that do not meet the conditions of perfect competition, including monopolistic competition, oligopoly, and monopoly.