November 04, 2016
Prickett Jones director Michael Hanrahan spoke recently at the ABA 2016 Delaware Business Law Forum, held at the Hotel DuPont in Wilmington on November 4-5, 2016. Mr. Hanrahan’s speech, entitled “Delaware Appraisal Rights Should Not be Further Reduced,” dealt with history of Delaware’s appraisal law, recent amendments to the appraisal statute, and the state of appraisal arbitrage.
The speech reviewed the history of appraisal rights, which were created to compensate stockholders after individual stockholders lost the ability to veto a merger. While appraisal was considered an absolute right for a dissenting stockholder, the process was, in most instances, economically and procedurally unfeasible. Eventually the law developed and appraisal became a viable option for many stockholders who were forcefully deprived of stock without adequate consideration. But now that appraisal has become a more effective remedy, its utility has been diminished by recent amendments to Delaware’s appraisal statute.
The Delaware Business Law Forum is an annual event that draws members of the bar and judiciary from across the country to discuss current issues in Delaware business law.