Massachusetts 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. Massachusetts Section 262 of the Delaware General Corporation Law is a provision that permits shareholders of a Delaware corporation to seek appraisal rights in the event of certain corporate transactions. Appraisal rights allow shareholders to obtain a judicial determination of the fair value of their shares, in case they oppose a particular transaction, such as a merger or consolidation. Under Massachusetts Section 262, shareholders who dissent from a proposed corporate transaction but are outvoted by the majority can exercise their right to dissent and demand the appraisal of their shares' fair value. The purpose of this provision is to protect minority shareholders from being forced to sell their shares at a price they consider unfair, instead providing them with a mechanism to ensure proper compensation. The appraisal process involves the dissenting shareholder notifying the corporation in writing of their intent to demand appraisal. Following this, the shareholder must abstain from voting in favor of the transaction and must not have consented in writing to the corporate action. After the transaction is completed, the shareholder must then formally petition the relevant court for an appraisal of their shares' value. In Massachusetts, there are no specific additional types or variations of Section 262 of the Delaware General Corporation Law. However, it's worth noting that Massachusetts has its own set of laws governing corporations known as the Massachusetts Business Corporation Act (MBC). Under the MBC, there may be similar provisions that grant appraisal rights to shareholders in certain corporate transactions. Some relevant keywords associated with Massachusetts Section 262 and Delaware General Corporation Law may include: appraisal rights, dissenting shareholder, fair value, corporate transactions, merger, consolidation, shareholder protection, minority shareholder, compensation, dissent, petition, court, Delaware corporation, majority vote, shareholder rights, Massachusetts Business Corporation Act (MBC), Delaware law.

Massachusetts Section 262 of the Delaware General Corporation Law is a provision that permits shareholders of a Delaware corporation to seek appraisal rights in the event of certain corporate transactions. Appraisal rights allow shareholders to obtain a judicial determination of the fair value of their shares, in case they oppose a particular transaction, such as a merger or consolidation. Under Massachusetts Section 262, shareholders who dissent from a proposed corporate transaction but are outvoted by the majority can exercise their right to dissent and demand the appraisal of their shares' fair value. The purpose of this provision is to protect minority shareholders from being forced to sell their shares at a price they consider unfair, instead providing them with a mechanism to ensure proper compensation. The appraisal process involves the dissenting shareholder notifying the corporation in writing of their intent to demand appraisal. Following this, the shareholder must abstain from voting in favor of the transaction and must not have consented in writing to the corporate action. After the transaction is completed, the shareholder must then formally petition the relevant court for an appraisal of their shares' value. In Massachusetts, there are no specific additional types or variations of Section 262 of the Delaware General Corporation Law. However, it's worth noting that Massachusetts has its own set of laws governing corporations known as the Massachusetts Business Corporation Act (MBC). Under the MBC, there may be similar provisions that grant appraisal rights to shareholders in certain corporate transactions. Some relevant keywords associated with Massachusetts Section 262 and Delaware General Corporation Law may include: appraisal rights, dissenting shareholder, fair value, corporate transactions, merger, consolidation, shareholder protection, minority shareholder, compensation, dissent, petition, court, Delaware corporation, majority vote, shareholder rights, Massachusetts Business Corporation Act (MBC), Delaware law.