Specialist firms are regulated by the SEC, to prevent fraud or ...

[rayancarla1]

Specialist firms are regulated by the SEC, to prevent fraud or the exploitation of the unique position that specialists have in market trades.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Appraisal Rights. Travelers Corp announced that it would merge with Primerica Corp At a special shareholders' meeting, a vote of the Travelers shareholders revealed that 95 percent approved of the merger. Robert Brandt and other shareholders who did not approve of the merger sued Travelers and others, complaining that the defendants had not obtained the highest possible price for shareholders. Travelers asked the court to dismiss the suit, contending that Brandt and the others had, as a remedy for their complaint, their statutory appraisal rights. On what basis might the court dismiss the suit? Discuss.

[Ahnyah]

Answer to Question 1

TRUE

Answer to Question 2

Appraisal rights
The Superior Court of Connecticut held that statutory appraisal rights were the exclusive remedy for the shareholders dissenting from the merger and dismissed the suit. The court quoted from the applicable statute: Where the right to be paid the value of shares is made available to a shareholder by statutory appraisal rights, such remedy shall be his exclusive remedy. The court said, There is no more elementary rule of statutory construction than that the intention which the legislature has expressed must govern. (The court acknowledged that although this was the law in Connecticut, other states do not make statutory appraisal rights the exclusive remedy in all situations.)