appraisal rights

Appraisal rights allow shareholders to formally oppose a company's proposed merger, sale, or significant structural change. If they believe the change isn't fair, they can request an independent valuation of their shares and, if desired, receive the fair value in cash instead of keeping their shares. This process protects minority shareholders from potential undervaluation or unfair treatment during major corporate decisions, ensuring they have a legal avenue to be fairly compensated if they disagree with the company's actions.