What must a dissenting shareholder do after filing a notice of election to dissent?

• A. File a written objection to the action, including a demand for payment of the fair value of his shares.
• B. File a petition for judicial dissolution.
• C. File a request for a new share issuance.
• D. Take no further action.

Answer: (A)

Dissenters’ rights in a merger or consolidation require a formal step after election. Once a shareholder files a notice of election to dissent, the crucial next move is to file a written objection to the proposed action and demand payment of the fair value of the shares. This objection and demand initiate the appraisal process, signaling that the dissenting shareholder does not approve of the transaction and seeks cash compensation if the fair value differs from market value or the deal terms. If the parties can’t agree on the value, the matter moves toward judicial determination of fair value. Taking no action, or pursuing dissolution or new share issuance, does not advance the dissenters’ statutory rights, which hinge on this written objection with a demand for payment.