Michigan 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. Michigan Section 262 of the Delaware General Corporation Law, also known as the Appraisal Rights statute, provides shareholders with the right to seek appraisal of their shares in certain circumstances. This law is applicable to Delaware corporations, including those who have their principal place of business or operate in the state of Michigan. Under Section 262, shareholders have a legal avenue to dissent and object to certain corporate actions that may impact their ownership rights. These actions typically include mergers, consolidations, or conversions, where the shareholders are not content with the proposed terms. The statute ensures that shareholders are provided with a fair and equitable value for their shares in case they disagree with the actions taken by the corporation. If a shareholder exercises their appraisal rights, they have the opportunity to receive compensation representing the "fair value" of their shares as determined by the Court of Chancery. It is important to note that Michigan Section 262 of the Delaware General Corporation Law encompasses a single set of regulations applicable to all eligible corporations in Michigan. Hence, different types of Section 262 do not exist; however, it may be referred to as the "Appraisal Rights statute" in legal discussions or documentation. Key terms associated with Michigan Section 262 include appraisal rights, dissenting shareholders, fair value, mergers, consolidations, conversions, Court of Chancery, Delaware General Corporation Law, and shareholder rights. In conclusion, Michigan Section 262 of the Delaware General Corporation Law grants shareholders the ability to exercise their appraisal rights, seeking fair value when they disagree with certain corporate actions such as mergers or consolidations. This statute protects shareholder rights and ensures that they receive just compensation for their shares.

Michigan Section 262 of the Delaware General Corporation Law, also known as the Appraisal Rights statute, provides shareholders with the right to seek appraisal of their shares in certain circumstances. This law is applicable to Delaware corporations, including those who have their principal place of business or operate in the state of Michigan. Under Section 262, shareholders have a legal avenue to dissent and object to certain corporate actions that may impact their ownership rights. These actions typically include mergers, consolidations, or conversions, where the shareholders are not content with the proposed terms. The statute ensures that shareholders are provided with a fair and equitable value for their shares in case they disagree with the actions taken by the corporation. If a shareholder exercises their appraisal rights, they have the opportunity to receive compensation representing the "fair value" of their shares as determined by the Court of Chancery. It is important to note that Michigan Section 262 of the Delaware General Corporation Law encompasses a single set of regulations applicable to all eligible corporations in Michigan. Hence, different types of Section 262 do not exist; however, it may be referred to as the "Appraisal Rights statute" in legal discussions or documentation. Key terms associated with Michigan Section 262 include appraisal rights, dissenting shareholders, fair value, mergers, consolidations, conversions, Court of Chancery, Delaware General Corporation Law, and shareholder rights. In conclusion, Michigan Section 262 of the Delaware General Corporation Law grants shareholders the ability to exercise their appraisal rights, seeking fair value when they disagree with certain corporate actions such as mergers or consolidations. This statute protects shareholder rights and ensures that they receive just compensation for their shares.