Question

bc corporation is merging with whitten corporation. the majority of shareholders approve the purchase, but a minority of shareholders objected to the proposal and have applied to the court to appraise the value of their stock. if the appraisal is granted, the shareholders will be paid the:

Answer 1

Dissenting shareholders in a merger who seek an appraisal will receive the 'fair value' for their shares, as determined by the court.

Step-by-step explanation:

When a majority of shareholders approve a merger, like in the case of BC Corporation merging with Whitten Corporation, but a minority of shareholders are opposed to it, those shareholders have the right to seek an appraisal remedy. If an appraisal is granted by the court, the dissenting shareholders are entitled to receive the 'fair value' of their shares.

This value is determined by the court and is intended to reflect what the shares are genuinely worth, rather than the price offered in the merger or the current market value. It's important to note that the fair value is assessed as of the date of the merger or other corporate action.