Asked by Victoria Nguyen on Jul 09, 2024

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Verified

An appraisal right is available only when a federal statute specifically provides for it.

Appraisal Right

The right of a dissenting shareholder, if he or she objects to an extraordinary transaction of the corporation (such as a merger or consolidation), to have his or her shares appraised and to be paid the fair value of the shares by the corporation.

Federal Statute

A law enacted by the national government that applies across the entire country.

  • Determine the privileges of shareholders concerning corporate consolidations, encompassing appraisal rights.
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Verified Answer

BS
Bikramvir SinghJul 15, 2024
Final Answer :
False
Explanation :
Appraisal rights, also known as dissenters' rights, are typically provided for under state corporate law rather than federal statute, allowing shareholders to demand a fair valuation of their shares in certain transactions.