The appraisal rights under the South African Companies Act, 2008
- Priyesh Modi
- Jan 18, 2022
- 1 min read
The appraisal rights under the South African Companies Act, 2008 allow a dissenting shareholder in limited circumstances to sell its entire shareholding back to the company at the fair value of the shares. This creates an effective put option for a minority shareholder where it can be applied.
However, section 164 (Dissenting shareholders appraisal rights) is a “procedural morass” and one should tread carefully when involved with it.