What are Your Rights as a Dissenting Shareholder - Minority Shareholders

What are Your Rights as a Dissenting Shareholder

On behalf of Daniel Watkins of Watkins Firm, A Professional Corporation
Posted On March 14, 2018

What are Your Rights as a Dissenting Shareholder

What are your rights as a dissenting shareholder based upon California and federal law?  How can you protect the value of your position as a minority shareholder if majority interests attempt to water down your stock or merge with another company to reduce or eliminate your position?  If your corporation intends to acquire another company, enter into a merger or recapitalize you have rights.  As a dissenting shareholder you may have the right to be offered a debt instrument or stock in a new corporation in exchange for your shares in a corporation which is about to be acquired or merged.  You will not be able receive any cash disbursements as a result of the merger.

However, prior to the acquisition, merger or recapitalization you may also have the right to force the majority to provide a sound appraisal for your existing shares in the corporation.  You would then force them to pay you the fair market value for your shares prior to the transaction.  Dissenting shareholder rights must be exercised in a timely manner and all associated legal contracts and paperwork must be properly constructed and executed.

The experienced shareholder’s rights attorneys at The Watkins Firm have decades of experience guiding shareholders in disputes with other shareholders or with the management of the corporation.  We provide sound counsel, insight and proven strategies to protect your position and the value of your investment while developing multiple options for you to consider.  There are also regulations regarding your status as a minority shareholder and specific actions you must take (such as voting against the merger or acquisition) in order to protect your position.

If you are a minority shareholder who is involved in a dispute or are concerned about attempts to sell the company, merge or acquire another business we invite you to contact the Watkins Firm or call 858-535-1511 for a free consultation.  What are your rights as a dissenting shareholder and how do you protect them?  Our experienced and proven shareholders’ rights attorneys will guide you through these questions so that you may make sound, informed decisions.

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9915 Mira Mesa Blvd., Suite 130
San Diego, CA 92131

Telephone: (858) 535-1511
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