Travis Texas Section 262 of the Delaware General Corporation Law

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

Description

This is a multi-state form covering the subject matter of the title. Travis Texas Section 262 of the Delaware General Corporation Law, also known as the appraisal rights statute, is a crucial provision that grants stockholders the right to seek a judicial appraisal of the fair value of their shares in the event of certain corporate transactions. This law is an important tool for protecting the interests of minority shareholders and ensuring fair treatment in transactions such as mergers, consolidations, or certain asset sales. Keywords: Travis Texas, Section 262, Delaware General Corporation Law, appraisal rights statute, stockholders, judicial appraisal, fair value, corporate transactions, minority shareholders, mergers, consolidations, asset sales. Types of Travis Texas Section 262 of the Delaware General Corporation Law: 1. Appraisal Rights in Mergers: One type of Travis Texas Section 262 applies to situations where a company is merged or consolidated with another entity. This provision allows stockholders who dissent or abstain from voting on the proposed merger to demand their shares' fair value through a judicial appraisal. 2. Appraisal Rights in Asset Sales: Another type of Travis Texas Section 262 can be invoked when a company decides to sell a substantial portion of its assets. In this scenario, stockholders who dissent or abstain from voting on the asset sale proposal have the right to seek a judicial appraisal of their shares' fair value. 3. Appraisal Rights Process: Travis Texas Section 262 outlines the detailed process for exercising appraisal rights. It sets forth specific requirements, including the timing and manner in which stockholders must notify the company of their intent to exercise these rights. The provision also explains the procedures for conducting judicial appraisals and issuing orders for the payment of fair value. 4. Fair Value Determination: This section clarifies that the term "fair value" of the shares is to be determined exclusive of any appreciation or depreciation resulting from the merger or asset sale. The court considers various factors, such as the company's financial condition, market value, and future prospects, in determining the fair value of the dissenting shareholder's shares. Overall, Travis Texas Section 262 is a vital component of the Delaware General Corporation Law that empowers stockholders with appraisal rights in specific corporate transactions. By providing a mechanism for dissenting shareholders to receive fair compensation for their shares, this provision ensures fairness and protection for all stakeholders involved in such transactions.

Travis Texas Section 262 of the Delaware General Corporation Law, also known as the appraisal rights statute, is a crucial provision that grants stockholders the right to seek a judicial appraisal of the fair value of their shares in the event of certain corporate transactions. This law is an important tool for protecting the interests of minority shareholders and ensuring fair treatment in transactions such as mergers, consolidations, or certain asset sales. Keywords: Travis Texas, Section 262, Delaware General Corporation Law, appraisal rights statute, stockholders, judicial appraisal, fair value, corporate transactions, minority shareholders, mergers, consolidations, asset sales. Types of Travis Texas Section 262 of the Delaware General Corporation Law: 1. Appraisal Rights in Mergers: One type of Travis Texas Section 262 applies to situations where a company is merged or consolidated with another entity. This provision allows stockholders who dissent or abstain from voting on the proposed merger to demand their shares' fair value through a judicial appraisal. 2. Appraisal Rights in Asset Sales: Another type of Travis Texas Section 262 can be invoked when a company decides to sell a substantial portion of its assets. In this scenario, stockholders who dissent or abstain from voting on the asset sale proposal have the right to seek a judicial appraisal of their shares' fair value. 3. Appraisal Rights Process: Travis Texas Section 262 outlines the detailed process for exercising appraisal rights. It sets forth specific requirements, including the timing and manner in which stockholders must notify the company of their intent to exercise these rights. The provision also explains the procedures for conducting judicial appraisals and issuing orders for the payment of fair value. 4. Fair Value Determination: This section clarifies that the term "fair value" of the shares is to be determined exclusive of any appreciation or depreciation resulting from the merger or asset sale. The court considers various factors, such as the company's financial condition, market value, and future prospects, in determining the fair value of the dissenting shareholder's shares. Overall, Travis Texas Section 262 is a vital component of the Delaware General Corporation Law that empowers stockholders with appraisal rights in specific corporate transactions. By providing a mechanism for dissenting shareholders to receive fair compensation for their shares, this provision ensures fairness and protection for all stakeholders involved in such transactions.