Shareholder Right to Dissent and Obtain Payment in Connection With Division; Application of MCL 450.1762 to Shareholder Actions.

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Sec. 5517.

(1) A shareholder of a dividing insurer is entitled to dissent from, and obtain payment of the fair value of the shareholder's shares in connection with, a division under this chapter in which the dividing insurer does not survive the division, unless the shares are converted into or canceled solely for 1 or more of the following:

(a) Cash.

(b) Shares that are listed on a national securities exchange or designated as a national market system security on an interdealer quotation system by the National Association of Securities Dealers, on the record date fixed to vote on the plan of division.

(2) Section 1762 of the business corporation act, 1972 PA 284, MCL 450.1762, applies to a shareholder exercising the rights in the same manner as would be applicable to a merger of a domestic corporation.

History: Add. 2018, Act 421, Imd. Eff. Dec. 20, 2018
Popular Name: Act 218


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