How can you use federal and state dissenting shareholder rights to prevent the unprofitable sale of your investment? If you hold a minority interest in a corporation you are probably used to the bullying tactics of majority interests to limit your access and input or to reduce the proper distribution of dividends. But what happens when they try a brazen move like a merger or selling your corporation to another company in order to dilute the value and influence of your shares?
Generally speaking, if you are a shareholder in a corporation you do not consent to either a merger, acquisition or recapitalization efforts you may be protected under dissenting shareholder laws. Minority shareholders in a corporation which is the subject of a takeover bid, merger or acquisition have protected rights under the law.
The experienced minority shareholder defense attorneys at the Watkins Firm work to prevent the unprofitable sale of your investment while protecting and enhancing your position. If your corporation is about to be acquired, you may be eligible to demand quality stock which protects voting rights and financial incentives in the new corporation or some other debt instrument in return for your shares in the existing corporation. Generally speaking, you cannot be paid cash for your interests in a merger, but our experienced minority shareholder attorneys will strongly advocate your interests and negotiate a strong resolution which protects your investment and interests.
You may also have the right to force the appraisal of your existing shares prior to the merger. Other shareholders or the corporation may then pay you the full fair market value of those shares in cash in exchange for your shares prior to any transaction.
How can you employ federal and state dissenting shareholder rights to prevent the unprofitable sale of your investment? Make sure you are not trapped into a vote on any acquisition, merger or sale before speaking with the experienced dissenting shareholder and minority shareholder defense attorneys at the Watkins Firm. We invite you to review the strong recommendations of our clients and the legal industry and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
