Legal Definitions - right of dissent and appraisal

The right of dissent and appraisal, also known as the appraisal remedy, is a legal right granted to corporate shareholders who oppose certain major corporate actions, such as a merger or acquisition. This right allows shareholders to have their shares judicially appraised and to demand that the corporation buy back their shares at the appraised value.

For example, if a corporation decides to merge with another company and a shareholder disagrees with this decision, they 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.

This right is important because it allows shareholders to protect their investment in the corporation and have a say in major decisions that could affect the value of their shares. It also provides a way for shareholders to exit the corporation if they do not agree with its actions.