Securities Law Commons^™

Corporations-Standard Of Valuation Of Dissenters' Stock Under Appraisal Statutes, Richard P. Matsch S.Ed.

Michigan Law Review

It was a well established rule at common law that fundamental changes in the character of a corporate enterprise could be accomplished only with the consent of all of the stockholders. However, the growth and development of modem corporations necessitated abrogation of this rule of unanimity. As a result, state legislatures enacted statutes authorizing consolidations and mergers with the consent of only a prescribed majority of the shareholders. It was recognized that for business convenience, the majority group must have power to determine the future course of the corporation's business and yet the individual stockholder should not be forced to …