Answered: Why is a dissenting stockholder who…

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Why is a dissenting stockholder who demands payment of his shares no longer allowed to withdraw from his decision?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 3Q: What is the difference between a stock dividend and a stock split? As a stockholder, would you...

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Question

Why is a dissenting stockholder who demands payment of his shares no longer allowed to withdraw from his decision?

Expert Solution

Step 1

Shareholders have the right to take their own decision about the variation introduced by the company. So, then he can demand his payment for his holding at fair value.

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