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Is a rescission an alternative outcome?

April 26, 2017alternative outcome rescission

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Is a rescission an alternative outcome?

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Yes. Any change based on the outcome of the shareholder vote is an alternative outcome, including a rescission where the funds are returned to the investor if shareholder approval is not obtained. This is because the company may be unable to complete a rescission without facing a financial burden. Other examples of an alternative outcome include changes to the interest and/or dividend rates, changes to maturity dates, and changes to investment amounts, even if these changes may benefit the company.