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The Trapp Family Lodge, Inc. (TFL), was incorporated in 1962 as a holding company for certain assets of the Vond Trapp family, including the Trapp Family Lodge, a resort hotel in Stowe Vermont, and other assets, including certain royalty rights related to the family's story as portrayed in a Broardway Musical and movie, The Sound of Music.
A majority of TFL shareholders approved a merger with a new corporation in 1994, and the merger took place on January 28, 1995. The dissenting shareholders, holding 75,629 of the corporation's 198,000 outstanding shares, were paid $33.84 per share as fiar value by th eTFL board of directors. The dissenting shareholders brought suit seeking a higher price as fiar value. After the trail court set their fair value of $63.44, TFL appealed. What are the rights of dissenting shareholders who object to a merger? Explain. Why or Why not? [In re 75,629 Shares of Common STock of Trapp Family Lodge, 725 A.2d 927 (Vt. 1999)]
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