When Dissenting Shareholders Do Not Properly Invoke Their Appraisal Rights

question 85

Multiple Choice

When dissenting shareholders do not properly invoke their appraisal rights, will they be forced to comply with the majority of the corporations' shareholders?

• A) No, dissenting shareholders are never forced to comply with the decision of the majority of the corporations' shareholders.
• B) Yes, in such a situation, dissenting shareholders must comply with the decision of the majority of the corporations' shareholders.
• C) Yes, although the dissenting shareholders cannot exercise their appraisal rights if not properly invoked, a court will not force them to comply with the decision of the majority of the corporations' shareholders
• D) No, dissenting shareholders need not comply as long as they adequately communicate their appraisal rights.
• E) No, dissenting shareholders need not comply because the procedures governing appraisal rights need not be strictly followed.

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Definitions:

Goods Sold

The quantity of products sold within a specific period, reflecting the company's sales performance.

Direct Materials Cost

The expense of basic materials and parts directly utilized in manufacturing products.

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Month

A unit of time, typically comprising 28 to 31 days, used as a measure for organizing calendar time.