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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by DoubleIndemnityon Aug 12, 2012 8:15am
277 Views
Post# 20208460

right of dissent

right of dissent

Right of dissent is described here:

https://www.wikinvest.com/stock/Southwestern_Energy_Company_(SWN)/Right_Dissent

In some cases, a shareholder has the right to "dissent" from a proposed fundamental change in the company. If the proposed change goes through, all shareholders who both voted no and formally dissented have the right to receive fair value for their investment. Essentially, the dissenters are saying "do this if you want, but do it without me".


The one example I'm familiar with occurred when a Labour Sponsored Fund (a Canadian investment with certain unusual characteristics) was converted to a normal corporation. Unitholders were told that they had the right to dissent. The change was approved by an overwhelming majority of unitholders and a small number of holders who voted no and dissented received net asset value in cash (which turned out to be a great deal because once the fund was a regular corporation and anyone could buy or sell without restrictions a lot of the new shareholders all tried to sell their shares and the price fell to a small fraction of net asset value).

The preliminary order is saying that this proposed restructuring wouldn't trigger any right of dissent. If the deal goes through (after the two votes and after the judge considers the objections and gives a ruling) nobody can opt out of the deal.

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