Mergers and fair value: What does it mean to a dissenting shareholder?

Download pdf

Shareholders in a company that is the subject of a takeover and merger have certain intrinsic rights available to them in the event that they dissent to the merger, most notably a right to have their shares purchased at a ‘fair value’. The meaning of fair value, as it is applied by the courts, is different in each jurisdiction and this article discusses the merger regime and explores the manner in which courts interpret ‘fair value’ in the British Virgin Islands, Cayman Islands and Bermuda.