Baker Marquart Helps Client Petition for Appraisal and Avoid Involuntary Dissolution Pursuant to California Corporations Code Section 2000, Which Leads to Favorable Acquisition of All Outstanding Shares
Baker Marquart was engaged after its client was served with a notice of involuntary dissolution by other shareholders in a successful restaurant chain. Rather than permit dissolution, the firm’s client wanted to purchase additional shares and continue operations. The firm petitioned for appraisal under California Corporations Code section 2000. The other shareholders respondents sought to stay the section 2000 appraisal, which Baker Marquart opposed; Baker Marquart also moved to institute appraisal without further delay. The court denied respondents’ motion to stay appraisal and granted Baker Marquart’s motion to stay dissolution and commence appraisal. Shortly after the court’s order, and on the eve of appraisal, the firm’s client was able to acquire all outstanding shares at a favorable purchase price, a price significantly lower than had been previously offered.