(p. 549) 4. Acme Corp. made a public offering of its shares. Stein bought 100 sh
ID: 2743339 • Letter: #
Question
(p. 549)
4. Acme Corp. made a public offering of its shares. Stein bought 100 shares at $10 each. Three months later, Acme announced that it planned to merge with another company. Under the terms of the merger, Acme shareholders would receive $14 per share, which was $1 more than the market price on the day prior to the announcement. Acme's shareholders approved the merger. Stein did not vote for or against the merger, but he turned in his shares and received $14 for each share. Stein later argued that Acme's directors acted improperly in approving the merger. He also believed the price he and other shareholders received was grossly inadequate. Will Stein be able to enforce his appraisal rights?
Explanation / Answer
Based on the Information Given Above
1. Acme Share Holder receive $14 Per Share Which was $1 more than the market price on the day prior to the announcement. which may adequate as per its market price but market price is not only the criteria to decide value of share.
2. Acmes Shareholder approved the merger here we think more than 90% share holder in favour of Merger.
3. Stein did not for or against the merger at time of voting, Later he argued a. Acme's directors acted improperly in approving the merger b. the price he and other shareholders received was grossly inadequate
on based on point a. above he have to proove Improperly act which is done by Director b. he also proove the value of share is inadequate compare to agreed value.
4. stein is not able to enforec his appraisal : Only A dissenting shareholder who is exercising a statutory or contractual right to dissent from a corporate action (he has to vote against merger) may have a legal right to seek appraisal of shares in the company.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.