What occurs if the shareholder and the corporation cannot agree on the fair value of the shares?

When a shareholder and a corporation are unable to agree on the fair value of shares during circumstances such as a merger or acquisition, the process typically involves legal mechanisms to resolve that dispute. The appointment of an expert appraiser is a common approach used in these situations.

The court may intervene to appoint an independent appraiser who can assess the value of the shares impartially, ensuring that the process is fair and based on objective standards rather than the conflicting opinions of the parties involved. This step helps to provide a resolution that reflects the true market value of the shares, protecting the interests of both the shareholder and the corporation.

Destined outcomes, such as negotiation or the sale of shares to a third party, do not specifically address the formal resolution of the disagreement over fair value and thus are not the primary paths taken in these scenarios. Instead, relying on an expert appraiser reinforces the principle of obtaining a fair market assessment, which is critical for upholding the rights of shareholders in corporate actions.