Legal Definitions - dissent and appraisal, right of

Definition: The right of corporate shareholders to have their shares judicially appraised and demand that the corporation buy back their shares at the appraised value if they oppose some extraordinary corporate action, such as a merger. This is also known as the appraisal right, dissenters' right, or right of dissent and appraisal.

Example: If a corporation decides to merge with another company, a shareholder who opposes the merger can exercise their right of dissent and appraisal. They can have their shares appraised by a court and demand that the corporation buy back their shares at the appraised value.

Explanation: This means that shareholders who disagree with a major decision made by the corporation, such as a merger or acquisition, have the right to have their shares appraised and sold back to the corporation at a fair price. This protects the shareholders from being forced to remain invested in a company they no longer support.