Appraisal right as a tool for corporate governance: Critical review of the Chilean case

Abstract

The thesis of this paper is that the existing rules in the Chilean legislation on setting the price of shares in the appraisal right are dysfunctional to the protected interest. Regarding the book value, the empirical evidence shows that on average, this corresponds to 53% of the average stock price. However, the latter form of estimation is not exempt from distortions. A reform should establish the "fair value" as a normative criterion for adequate protection of the dissenting shareholder.