- appraisal rights
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USAA statutory remedy available in many states to stockholders who object to certain extraordinary actions taken by the corporation (such as mergers). This remedy typically allows dissenting stockholders to require the corporation to repurchase their stock at a price equivalent to its fair market value immediately before the extraordinary corporate action. The nature of the extraordinary corporate action which triggers this right differs in every state, but almost all include corporate consolidations and mergers.Some states (such as, Delaware) permit these rights to be provided contractually to partners in a partnership (either a general partnership or a limited partnership) and members in a limited liability company by including such rights in the applicable partnership agreement or LLC agreement.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
- appraisal rights
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n. The statutory right available in most states for a corporation's minority shareholders who object to certain extraordinary corporate actions (the nature of which varies state to state, but usually includes consolidations and mergers) to have a fair price of their stock determined in a judicial proceeding prior to the action and to require the corporation to repurchase their stock at that price.See also fault.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
