§1629d Dissenters rights

Summary

Allows a shareholder of a Native Corporation to force the company to buy back all of their Settlement Common Stock in two voting situations. One applies if shareholders block an approved change to end limits on selling the stock; a shareholder who voted for ending the limits can demand payment only if the same vote also approved a plan to buy stock from dissenters. The other applies if shareholders vote to keep limits and do not issue freely tradeable stock; a shareholder who voted against that change can demand payment and that demand must be honored. State rules about how a dissenting shareholder is paid normally apply, but the board can give shareholders more time to act. Before the vote, the board can set rules such as valuing the stock as restricted or lowering value for certain cemetery, subsistence, or speculative lands. The board can also require payment by a negotiable note instead of cash. That note must be secured by a payment bond, escrowed assets worth at least 125% of the note, or a lien on real property worth at least 125% (with some land types excluded). The note must pay interest twice a year starting on the vote date at the one‑year U.S. Treasury rate in effect then, and the note’s principal and interest must be paid no later than five years after the vote. Any cash or note payment is reduced by dividends paid after the vote. After payment, the shareholder gives up the shares and any interest in the corporation.