Asked by Francesca Kivitt on Jun 09, 2024
Verified
Explain under what circumstances a shareholder's right to dissent arises.
Shareholder's Right
The entitlements and privileges, such as voting and profit sharing, accorded to individuals or entities owning shares in a corporation.
Dissent
The act of expressing or holding opinions that are at variance with those previously, commonly, or officially expressed.
- Learn about the rights inherent to shareholders, with a focus on the protections for minority interests, and examine the procedures for maintaining accountability and assurance.
Verified Answer
MM
Matthew MaherJun 10, 2024
Final Answer :
A shareholder's right to dissent arises when a corporation, usually in the form of the directors, makes a decision that will have the effect of benefitting the corporation as a whole, but won't particularly help the position of a minority shareholder. In some jurisdictions, that minority shareholder has the right to dissent, and have his or her shares purchased at a fair price.
Learning Objectives
- Learn about the rights inherent to shareholders, with a focus on the protections for minority interests, and examine the procedures for maintaining accountability and assurance.