Illinois Section 262 of the Delaware General Corporation Law

• Category: Corporations - Mergers and Acquisitions
• State: Multi-State
• Control #: US-CC-12-829
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Illinois Section 262 of the Delaware General Corporation Law is a provision that governs the legal rights of shareholders in Delaware corporations when there is a merger or consolidation involving their company. This provision is commonly referred to as the "appraisal rights" statute. Under Illinois Section 262, if a shareholder objects to a proposed merger or consolidation, they have the right to demand an appraisal of their shares and receive fair value for their stock. This allows shareholders to have an avenue for evaluation and compensation in situations where they believe the merger or consolidation undervalues their shares. Keywords: Illinois Section 262, Delaware General Corporation Law, appraisal rights, shareholders, merger, consolidation, legal rights, fair value, stock, evaluation, compensation. There are different types or aspects of Illinois Section 262, which include: 1. Appraisal Rights: This provision grants shareholders the right to demand appraisal of their shares in order to receive fair value for their stock in the event of a merger or consolidation. 2. Shareholder Dissent: Shareholders who dissent from a merger or consolidation plan can exercise their rights under Section 262 to ensure they are adequately compensated for their shares. 3. Fair Value Determination: Illinois Section 262 also establishes the process by which fair value is determined for the dissenting shareholders' stocks. This ensures that shareholders receive just compensation for the value of their investment. 4. Shareholder Protections: This provision safeguards the interests of shareholders by providing them with a legal recourse if they believe their ownership rights are being unfairly diminished or undervalued in a merger or consolidation. 5. Mergers and Consolidations: Illinois Section 262 specifically applies to situations involving mergers and consolidations, which are common corporate restructuring activities where companies combine their assets, operations, or stocks. 6. Delaware General Corporation Law: Illinois Section 262 is part of the broader body of law that governs corporations incorporated under the Delaware General Corporation Law. This law is widely considered to be one of the most comprehensive and influential corporate statutes in the United States. In summary, Illinois Section 262 of the Delaware General Corporation Law provides shareholders with important appraisal rights in the context of mergers and consolidations. It ensures that dissenting shareholders have a mechanism to demand fair value for their stock and protects their interests in corporate restructuring transactions.

Illinois Section 262 of the Delaware General Corporation Law is a provision that governs the legal rights of shareholders in Delaware corporations when there is a merger or consolidation involving their company. This provision is commonly referred to as the "appraisal rights" statute. Under Illinois Section 262, if a shareholder objects to a proposed merger or consolidation, they have the right to demand an appraisal of their shares and receive fair value for their stock. This allows shareholders to have an avenue for evaluation and compensation in situations where they believe the merger or consolidation undervalues their shares. Keywords: Illinois Section 262, Delaware General Corporation Law, appraisal rights, shareholders, merger, consolidation, legal rights, fair value, stock, evaluation, compensation. There are different types or aspects of Illinois Section 262, which include: 1. Appraisal Rights: This provision grants shareholders the right to demand appraisal of their shares in order to receive fair value for their stock in the event of a merger or consolidation. 2. Shareholder Dissent: Shareholders who dissent from a merger or consolidation plan can exercise their rights under Section 262 to ensure they are adequately compensated for their shares. 3. Fair Value Determination: Illinois Section 262 also establishes the process by which fair value is determined for the dissenting shareholders' stocks. This ensures that shareholders receive just compensation for the value of their investment. 4. Shareholder Protections: This provision safeguards the interests of shareholders by providing them with a legal recourse if they believe their ownership rights are being unfairly diminished or undervalued in a merger or consolidation. 5. Mergers and Consolidations: Illinois Section 262 specifically applies to situations involving mergers and consolidations, which are common corporate restructuring activities where companies combine their assets, operations, or stocks. 6. Delaware General Corporation Law: Illinois Section 262 is part of the broader body of law that governs corporations incorporated under the Delaware General Corporation Law. This law is widely considered to be one of the most comprehensive and influential corporate statutes in the United States. In summary, Illinois Section 262 of the Delaware General Corporation Law provides shareholders with important appraisal rights in the context of mergers and consolidations. It ensures that dissenting shareholders have a mechanism to demand fair value for their stock and protects their interests in corporate restructuring transactions.