Series 79 practice questioneasySqueeze-Out Mergers and Appraisal Rights
In a Delaware short-form merger, what remedy is available to a minority shareholder who disagrees with the merger price?
- ARescind the merger
- BForce a vote of all shareholders
- CBlock the merger by injunction
- DDemand appraisal rights and seek a judicial determination of fair value✓ Correct answer
Explanation
Why D — Demand appraisal rights and seek a judicial determination of fair value
Appraisal rights allow dissenting shareholders to petition the court for a fair valuation. The trap answers distract with remedies not available in a short-form merger under Delaware law.
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