Court Opinion

ID: 9626623
Source: CourtListenerOpinion
Date Created: 2023-08-22 08:19:53.853878+00
Date Added: 2024-06-11T18:06:31.281765
License: Public Domain

Judge TURSI,
specially concurs.
The plaintiff contends that defendant is bound to pay the amount plaintiff claimed as fair value pursuant to § 7-4-124(8)(a) & (f), C.R.S. (1986 Repl.Yol. 3A). I agree.
As pertinent here, § 7-4-124(8) reads: (a) Within sixty days after receiving a demand for payment pursuant to subsection (7) of this section, if any such demand for payment remains unsettled, the corporation shall file in an appropriate court a petition requesting that the fair value of the shares and interest thereon be determined by the court.
[[Image here]]
(f) If the corporation fails to file a petition as provided in paragraph (a) of this subsection (8), each dissenter who had made a demand and who has not already settled his claim against the corporation shall be paid by the corporation the amount demanded by him with interest and may sue therefor in an appropriate court, (emphasis supplied)
It is not seriously disputed that plaintiff complied with subsection (a) and that defendants failed to comply with subsection (f). Defendants have failed to proffer any *498satisfactory reason why these provisions of the controlling statute should not apply. Therefore, I would affirm the judgment.
However, because I am unable to agree with the majority’s holding on the valuation of the preferred shares at issue here, I write separately.
Pursuant to § 7-2-102(1)(f), C.R.S. (1986 Repl.Vol. 3A), the relative rights and preferences of the preferred shares held by plaintiff are set forth in defendant’s articles of incorporation. The redemption price of plaintiff’s shares is clearly set forth as provided in § 7-4-102(2)(b), C.R.S. (1986 RepLVol. 3A) at $1 per share. Hence, pursuant to § 7-4-124(1)(c), C.R.S. (1986 Repl.Vol. 3A), relied upon by the majority, the fair value of these shares immediately before the effectuation of the corporate action was $1.00 per share.
I agree that if incorporators wish to authorize the issuance of preferred shares with redemptive rights comparable to those normally held only by common shares that may be done by proper inclusion in the articles of incorporation. See §§ 7-2-102(l)(f) & 7-4-102(2)(b). However, this is not the ease before us.
Therefore, absent specific provisions in the articles of incorporation and proper endorsement on the face of the preferred shares, I reject the rule adopted by the majority and would not follow it.