17:27B-6 - Rights of dissenting shareholders - New Jersey Statutes

17:27B-6.  Rights of dissenting shareholders
    (1) Within 30 days after delivery of the plan or a summary thereof pursuant  to subsection (1) of section 5, any shareholder of the subsidiary insurer to  whom the parent corporation was required to make such delivery may give to the  parent corporation written notice of his dissent from the plan and of his  demand for payment of the fair value of his shares.

    (2) Upon giving such notice, the dissenting shareholder shall cease to have  any rights of a shareholder, except the right to be paid the fair value of his  shares, determined as of the day prior to the day on which the plan of acquisition was adopted by the parent corporation and excluding any appreciation or depreciation resulting from such action.  Such determination of  fair value shall be made in accordance with the provisions of sections 14A:11-6  through 14A:11-10 of the New Jersey Business Corporation Act, all references  therein to a demand pursuant to subsections 14A:11-2(3), 14A:11-2(4) or  14A:11-2(5) being deemed for such purpose to include a notice of dissent and  demand made pursuant to subsection (1) of this section 6.

    (3) Not later than 20 days after giving notice of his dissent and demand for  payment as aforesaid, each dissenting shareholder shall submit the certificate  or certificates representing his shares to the parent corporation for notation  as provided in subsection 14A:11-2(6) of the New Jersey Business Corporation  Act, the effect of which notation shall be as specified in said subsection.

     L.1971, c. 132, s. 6, eff. May 6, 1971.