What are the rights of minority investors in cross-border mergers and acquisitions?
In a cross-border merger and acquisition (M&A) in Washington, minority investors have certain rights. These rights, based on both U.S. and international business law, are designed to protect the interests of the minority investors. First, minority investors have a right to be informed of relevant information related to the transaction. This includes information on the potential risks and costs associated with the transaction, as well as any potential benefit to the investors. In addition, minority investors also have the right to consult with their own advisers and may request additional information from the directors and officers of the parties involved in the transaction. Second, minority investors have the right to vote on the proposed transaction. In most cases, the vote must be a majority vote in favor of the proposed transaction in order for it to proceed. Minority investors also have the right to prevent any minority shareholder from voting in favor of the transaction. Finally, minority investors also have the right to receive a fair value for their shares in the event of a transaction. This means that the value of their shares should reflect the value of the company, prior to the transaction. This is done to ensure that the minority investors receive a fair pay-out from the transaction. In conclusion, minority investors in a cross-border M&A in Washington have several rights, both at the federal and international level, designed to protect their interests. These rights include the right to be informed, the right to vote, and the right to receive a fair value for their shares.
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