<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 47-33-14 - Right to demand fair value of voting shares--Notice of right of demand. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069606Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069606SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069606CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069606Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069606DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069606Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2069606Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2069606000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069606SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069606SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069606Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-14"><span class="s2069606SENU">47-33-14</span></a><span xml:space="preserve" class="s2069606SENU">. </span><span class="s2069606CL">Right to demand fair value of voting shares--Notice of right of demand.</span></p><p dir="ltr" class="s2069606Normal-000000"><span xml:space="preserve" class="s2069606DefaultParagraphFont">(1) Unless otherwise provided in the articles of the domestic public corporation before the control share acquisition has occurred, in the event control shares acquired in the control share acquisition are accorded voting rights pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-12"><span class="s2069606DefaultParagraphFont">47-33-12</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> and the acquiring person beneficially owns a majority or more of all voting shares, all shareholders of the domestic public corporation who did not vote to approve the resolution pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-12"><span class="s2069606DefaultParagraphFont">47-33-12</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> shall have the right to make written demand on the acquiring person for payment of the fair value of the voting shares of the corporation held by the shareholder and the acquiring person shall be required to pay the fair value, plus interest, to the shareholder in cash pursuant to the procedures herein specified. Interest shall be payable on the fair value of the shares at the Category C rate of interest provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-3-16"><span class="s2069606DefaultParagraphFont">54-3-16</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> from and after the date the control shares acquired in the control share acquisition are accorded full voting rights pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-12"><span class="s2069606DefaultParagraphFont">47-33-12</span></a><span class="s2069606DefaultParagraphFont">.</span></p><p dir="ltr" class="s2069606Normal-000001"><span class="s2069606DefaultParagraphFont">(2) As used in this section, "fair value" includes an increment representing a proportion of any value payable for acquisition of control of the corporation and, in no event, shall be less than the highest price paid per share by the acquiring person in the control share acquisition for other shares of the same class or series.</span></p><p dir="ltr" class="s2069606Normal-000001"><span class="s2069606DefaultParagraphFont">(3) As soon as practicable after such events have occurred, the acquiring person shall cause a notice to be delivered to all shareholders of the domestic public corporation:</span></p><p dir="ltr" class="s2069606Normal-000002"><span xml:space="preserve" class="s2069606DefaultParagraphFont">(a)    Advising them that all shareholders who did not vote to accord voting rights to the control shares pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-12"><span class="s2069606DefaultParagraphFont">47-33-12</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> are entitled to demand that they be paid the fair value of their shares;</span></p><p dir="ltr" class="s2069606Normal-000002"><span class="s2069606DefaultParagraphFont">(b)    Advising them that the minimum value any such shareholder can receive under this section is the highest price paid per share by the acquiring person in the control share acquisition for other shares of the same class or series and stating that value, plus interest;</span></p><p dir="ltr" class="s2069606Normal-000002"><span class="s2069606DefaultParagraphFont">(c)    Stating the acquiring person's opinion of the fair value of the shares, explaining the basis upon which that value was determined, and offering to pay each shareholder that amount in cash for each share, plus interest, upon receiving the shareholder's agreement to accept it; however, in no event shall the amount offered by the acquiring person be less than the minimum value the shareholder can receive under this section;</span></p><p dir="ltr" class="s2069606Normal-000002"><span xml:space="preserve" class="s2069606DefaultParagraphFont">(d)    Advising them that any such shareholder may elect to employ the procedure set forth in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-15"><span class="s2069606DefaultParagraphFont">47-33-15</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> for a determination of the fair value of his shares if the shareholder believes the fair value of his shares is higher than the amount offered by the acquiring person; and</span></p><p dir="ltr" class="s2069606Normal-000002"><span class="s2069606DefaultParagraphFont">(e)    Stating the address to which such shareholders may send their demands to be paid the fair value of their shares and the time within which the shareholders must submit their demands, which shall not be less than thirty days from the date of mailing of the notice by the acquiring person to the shareholders.</span></p><p dir="ltr" class="s2069606Normal"><span xml:space="preserve" class="s2069606DefaultParagraphFont">The notice shall also include copies of this section and § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-15"><span class="s2069606DefaultParagraphFont">47-33-15</span></a><span xml:space="preserve" class="s2069606DefaultParagraphFont"> and a form which may be used by the shareholder for demanding payment pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-33-15"><span class="s2069606DefaultParagraphFont">47-33-15</span></a><span class="s2069606DefaultParagraphFont">.</span></p><p dir="ltr" class="s2069606Normal-000001"><span class="s2069606DefaultParagraphFont">(4) The provisions of this section shall not preclude an acquiring person from purchasing voting shares of the corporation at a price other than the fair value of those shares and does not preclude any shareholder from agreeing to sell his voting shares at that or any other price to any person.</span></p><p dir="ltr" class="s2069606Normal"><span xml:space="preserve" class="s2069606000003"> </span></p><p dir="ltr" class="s2069606Normal"><span class="s2069606SCL">Source:</span><span xml:space="preserve" class="s2069606SCL-000004"> SL 1990, ch 369, § 207.</span></p></div></body></html>