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Appraisal Rights

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Appraisal rights
A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently.

Appraisal Right
In mergers and acquisitions, the right of shareholders who object to being acquired to demand a fair price for their shares, as determined by a court. In theory, this guarantees that shareholders are adequately compensated for being overridden on the merger or acquisition. These shareholders may elect to have their shares purchased by the acquiring corporation at the price set by the court. In the United States, most states grant appraisal rights in their regulatory statutes.


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Subsequent chapters are devoted to how to create a corporate governance program, shareholder resolutions, the annual meeting, voting rights, mergers and tender offers, appraisal rights, and direct and derivative actions, among other topics.
The merger results in the automatic conversion, subject to appraisal rights, of the remaining Marine Transport shares into the right to receive $7 per former Marine Transport share, the same price paid to the tendering shareholders.
In the merger, each Share not previously purchased in the tender offer or subsequent offering period will be converted, subject to appraisal rights, into the right to receive the same $3.
 
 
 
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