Appraisal rights

Appraisal rights

A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently.

Appraisal Right

In mergers and acquisitions, the right of shareholders who object to being acquired to demand a fair price for their shares, as determined by a court. In theory, this guarantees that shareholders are adequately compensated for being overridden on the merger or acquisition. These shareholders may elect to have their shares purchased by the acquiring corporation at the price set by the court. In the United States, most states grant appraisal rights in their regulatory statutes.