Opinion ID: 768509
Heading Depth: 2
Heading Rank: 1

Heading: The Business Relationship and the Merger

Text: 3 The Dissenters are former stockholders in American Sharecom, Inc., a Minnesota corporation principally engaged in the business of purchasing telephone line access and reselling long-distance services to small and medium-sized businesses. Simon, Weinert, and King were the President, Vice-President and Chief Financial Officer of the Corporation, respectively. Each man also held a place on the Corporation's Board of Directors. 4 In April of 1992, the Board voted to approve a freeze-out 2 merger of the Corporation with Sharecom Holdings, Inc., a Minnesota corporation owned exclusively by Simon and Weinert. As a result, every shareholder with the exception of Simon and Weinert would be cashed out, leaving them as the sole shareholders of the surviving corporation. The Board voted to pay each shareholder, save Simon and Weinert, $17,694.64 per share. 3 The Dissenters opposed the merger and exercised their Dissenters' rights under Minnesota Statute 302A.471(1)(c), thereby challenging the corporation's proffered payment per share. 4 5 The merger became effective on May 8, 1992. The Corporation paid off each shareholder with the exception of the Dissenters. In accordance with Minnesota Statute 302A.473(7), the Corporation thereafter filed a petition for determination of value with the state court. 5