Delaware's Corporate Appraisal Statute and Fair Value Standard
Delaware's corporation law provides stockholders of Delaware corporations with the right to receive the judicially determined “fair value” of their shares in connection with certain corporate transactions. This article provides an overview of the Delaware appraisal statute and appraisal actions brought under it, as well as the standards generally employed by the Delaware Court of Chancery to determine fair value. It also summarizes the rules governing the allocation of fees and costs in an appraisal action, as well as the calculation of post-merger interest on the fair value award.Abstract
Contributor Notes
Bradley W. Voss, Esq. is with Potter Anderson & Corroon LLP, located in Wilmington, Delaware. Mr. Voss can be reached at (302) 984-6023. The views expressed herein are solely those of the author, and do not necessarily represent the views of the firm or its clients. This article should not be relied on for legal advice, especially in light of the complexity of the Appraisal Statute and the decisional law interpreting it. This article may be deemed to constitute attorney advertising.