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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 6. Alaska Corporations Code
- Section 578. Offer and Payment to Dissenting Shareholders; Circumstances Where Prohibited.
previous: Section 576
. Procedures Relating to the Exercise of a Shareholder's Right to Dissent; Completion of Corporate Action; Notice of Election; Treatment of Shares.
next: Section 580
. Action to Determine Value of Shares.
AS 10.06.578. Offer and Payment to Dissenting Shareholders; Circumstances Where Prohibited.
- (a) Within 15 days after the expiration of the period within which shareholders may file their notice of election to
dissent under AS 10.06.576, or within 15 days after
the proposed corporate action is completed, whichever is later, the corporation or, in the case of a merger or
consolidation, the surviving or new corporation, shall make a written offer by certified mail to each shareholder who
has filed the notice of election, to pay the amount the corporation estimates to be the fair value of the shares. The
offer shall be made at the same price for each share to all dissenting shareholders of the same class, or if divided
into series, of the same series.
- (b) The offer required by (a) of this section shall be accompanied by a
- (1) balance sheet of the corporation whose shares the dissenting shareholder holds; the date of the balance sheet shall be
that of the most recent balance sheet produced in the 12 months before the offer;
- (2) profit and loss statement or statements for at least 12 months preceding the date of the balance sheet; if the
corporation was not in existence during the entire 12-month period preceding the balance sheet required by (1) of this
subsection, then a profit and loss statement for that portion of the 12-month period preceding the balance sheet during
which the corporation was in existence;
- (3) statement of the total number of shares with respect to which notices of election to dissent have been received and
the total number of holders of these shares; and
- (4) copy of this section and AS 10.06.580
- (c) If the corporate action has been completed the offer required by (a) of this section shall also be accompanied by
- (1) advance payment to each shareholder who submitted the share certificates to the corporation, or to whom notice was
sent if the shares were uncertificated, as provided in AS 10.06.576
(f), of the amount offered under (a) of this section; or
- (2) a statement to a shareholder who has not submitted the share certificates, if certificates were issued for the shares,
that advance payment of the amount offered under (a) of this section will be made by the corporation promptly upon
submission of the certificates.
- (d) If the corporate action has not been completed when the offer required by (a) of this section is made, the advance
payment or statement about the advance payment shall be sent to each shareholder entitled to the payment or notice,
after completion of the corporate action.
- (e) The advance payment or statement about the advance payment shall include advice to the shareholder that acceptance of
the payment does not constitute a waiver of the shareholder's right to dissent.
- (f) The corporation may consider that a shareholder who fails to make written objection to the amount tendered under
(c)(1) of this section or to submit shares in response to the statement sent under (c)(2) of this section within 30
days of the date the statement was mailed has agreed that the amount offered represents the fair value of the shares.
The shareholder shall have no interest in the shares or the outcome of litigation begun under AS 10.06.580
- (g) Notwithstanding the other provisions of this section, if the payments otherwise required by (c) and (d) of this
section or determined in accordance with AS 10.06.580
would be distributions in violation of AS 10.06.358
- 10.06.365, or 10.06.375, the corporation may not make a distribution to
a dissenting shareholder. In that event, a corporation that would otherwise have the payment obligation under (c) and
(d) of this section or AS 10.06.580
shall, in addition to complying with (a) and (b) of this section, give written notice within the time limits of (a)
and (b) of this section to dissenting shareholders of its inability to make payment. The notice must include
- (1) an explanation why the corporation is unable to make the payments otherwise required by this section;
- (2) a statement that a dissenting shareholder has an option to
- (A) withdraw the shareholder's notice of election to dissent, and that the corporation will consider that the withdrawal
was made with the written consent of the corporation; or
- (B) retain the status of a dissenter, and, if the corporation is liquidated, be subordinated to the rights of the
creditors of the corporation, but have rights superior to the nondissenting shareholders, but if the corporation is not
liquidated, retain the right to be paid under (c) and (d) of this section or AS 10.06.580
and the corporation must satisfy the obligation when the restrictions on distributions do not apply; and
- (3) a statement that if the corporation does not receive the written election provided under (2) of this subsection within
60 days after notice given as required by this section, the corporation will consider that the shareholder has
withdrawn the notice of election under (2)(A) of this subsection.
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