How Does the Process Work for Obtaining an Appraisal of Shares?

After filing a petition under Section 262 demanding appraisal of shares, the surviving corporation must file with the Court a list of the names and addresses of all stockholders who have demanded payment of fair value for their shares and with whom agreements regarding such value have not been reached.

Thereafter, the Court will hold a hearing on the petition and determine the stockholders who have properly perfected their appraisal rights under Section 262. At the hearing, the Court will determine the “fair value” of the shares as well as the fair rate of simple or compound interest, if any, to be paid upon such fair value.

Following this determination, the Court will order the surviving corporation to pay the dissenting shareholders the applicable amount.

If you would like to speak to a litigator in Fox Rothschild’s Delaware office, please reach out to Sid Liebesman (302) 622-4237 or Seth Niederman (302) 622-4238.