Dissenting Shares | Practical Law

Dissenting Shares | Practical Law

Dissenting Shares

Dissenting Shares

Practical Law Glossary Item 8-383-2175 (Approx. 2 pages)

Glossary

Dissenting Shares

Shares held by stockholders exercising the statutory remedy of appraisal rights to object to certain extraordinary actions taken by the company (such as mergers and corporate consolidations). Generally dissenting shares cannot be voted in favor of the company action that is the subject of the appraisal proceeding, but the exact requirements depend on the applicable state statute.