Florida Statutes
Part I - General Provisions (Ss. 607.0101-607.193)
607.1436 - Election to purchase instead of dissolution.


(1) In a proceeding under s. 607.1430(1)(b), the corporation may elect or, if it fails to elect, one or more shareholders may elect to purchase all shares owned by the petitioning shareholder at the fair value of the shares. An election pursuant to this section shall be irrevocable unless the court determines that it is equitable to set aside or modify the election.
(2) An election to purchase pursuant to this section may be filed with the court at any time within 90 days after the filing of the petition under s. 607.1430(1)(b) or at such later time as the court in its discretion may allow. If the election to purchase is filed by one or more shareholders, the corporation shall, within 10 days thereafter, give written notice to all shareholders, other than the petitioner. The notice must state the name and number of shares owned by the petitioner and the name and number of shares owned by each electing shareholder and must advise the recipients of their right to join in the election to purchase shares in accordance with this section. Shareholders who wish to participate must file notice of their intention to join in the purchase no later than 30 days after the effective date of the notice to them. All shareholders who have filed an election or notice of their intention to participate in the election to purchase thereby become parties to the proceeding and shall participate in the purchase in proportion to their ownership of shares as of the date the first election was filed, unless they otherwise agree or the court otherwise directs. After an election has been filed by the corporation or one or more shareholders, the proceeding under s. 607.1430(1)(b) may not be discontinued or settled, nor may the petitioning shareholder sell or otherwise dispose of his or her shares, unless the court determines that it would be equitable to the corporation and the shareholders, other than the petitioner, to permit such discontinuance, settlement, sale, or other disposition.
(3) If, within 60 days after the filing of the first election, the parties reach agreement as to the fair value and terms of the purchase of the petitioner’s shares, the court shall enter an order directing the purchase of the petitioner’s shares upon the terms and conditions agreed to by the parties.
(4) If the parties are unable to reach an agreement as provided for in subsection (3), the court, upon application of any party, may stay the proceeding to dissolve under s. 607.1430(1)(b) and shall, whether or not the proceeding is stayed, determine the fair value of the petitioner’s shares as of the day before the date on which the petition under s. 607.1430 was filed or as of such other date as the court deems appropriate under the circumstances.
(5) Upon determining the fair value of the shares, the court shall enter an order directing the purchase upon such terms and conditions as the court deems appropriate, which may include payment of the purchase price in installments, when necessary in the interests of equity, provision for security to assure payment of the purchase price and any additional costs, fees, and expenses as may have been awarded, and, if the shares are to be purchased by shareholders, the allocation of shares among such shareholders. In allocating the petitioner’s shares among holders of different classes of shares, the court shall attempt to preserve any existing distribution of voting rights among holders of different classes and series insofar as practicable and may direct that holders of any specific class or classes or series shall not participate in the purchase. Interest may be allowed at the rate and from the date determined by the court to be equitable; however, if the court finds that the refusal of the petitioning shareholder to accept an offer of payment was arbitrary or otherwise not in good faith, no interest shall be allowed. If the court finds that the petitioning shareholder had probable grounds for relief under s. 607.1430(1)(b), it may award expenses to the petitioning shareholder, including reasonable fees and expenses of counsel and of any experts employed by petitioner.
(6) The entry of an order under subsection (3) or subsection (5) shall be subject to the provisions of subsection (8), and the order shall not be entered unless and until the award is determined by the court to be permitted under the provisions of subsection (8). In determining compliance with s. 607.06401, the court may rely on an affidavit from the corporation as to compliance with that section as of the measurement date. Upon entry of an order under subsection (3) or subsection (5), the court shall dismiss the petition to dissolve the corporation under s. 607.1430(1)(b) and the petitioning shareholder shall no longer have any rights or status as a shareholder of the corporation, except the right to receive the amounts awarded by the order of the court, which shall be enforceable in the same manner as any other judgment.
(7) The purchase ordered pursuant to subsection (5) shall be made within 10 days after the date the order becomes final.
(8) Any payment by the corporation pursuant to an order under subsection (3) or subsection (5), other than an award of fees and expenses pursuant to subsection (5), is subject to the provisions of s. 607.06401. Unless otherwise provided in the court’s order, the effect of the distribution under s. 607.06401 shall be measured as of the date of the court’s order under subsection (3) or subsection (5).
History.—s. 11, ch. 94-327; s. 36, ch. 97-102; s. 195, ch. 2019-90.

Structure Florida Statutes

Florida Statutes

Title XXXVI - Business Organizations

Chapter 607 - Florida Business Corporation Act

Part I - General Provisions (Ss. 607.0101-607.193)

607.0101 - Short title; applicability.

607.0102 - Reservation of power to amend or repeal.

607.0120 - Filing requirements.

607.0121 - Forms.

607.0122 - Fees for filing documents and issuing certificates.

607.0123 - Effective time and date of document.

607.0124 - Correcting filed document; withdrawal of filed record before effectiveness.

607.0125 - Filing duties of the department.

607.0126 - Appeal from department’s refusal to file document.

607.0127 - Certificates to be received in evidence; evidentiary effect of certified copy of filed document.

607.0128 - Certificate of status.

607.0130 - Powers of department.

607.01401 - Definitions.

607.0141 - Notice.

607.0143 - Qualified director.

607.0201 - Incorporators.

607.0202 - Articles of incorporation; content.

607.0203 - Incorporation.

607.0204 - Liability for preincorporation transactions.

607.0205 - Organizational meeting of directors.

607.0206 - Bylaws.

607.0207 - Emergency bylaws.

607.0208 - Forum selection.

607.0301 - Purposes and application.

607.0302 - General powers.

607.0303 - Emergency powers.

607.0304 - Lack of power to act.

607.0401 - Corporate name.

607.04021 - Reserved name.

607.0403 - Registered name; application; renewal; revocation.

607.0501 - Registered office and registered agent.

607.0502 - Change of registered office or registered agent.

607.0503 - Resignation of registered agent.

607.05031 - Change of name or address by registered agent.

607.05032 - Delivery of notice or other communication.

607.0504 - Service of process, notice, or demand on a corporation.

607.0505 - Registered agent; duties.

607.0601 - Authorized shares.

607.0602 - Terms of class or series determined by board of directors.

607.0603 - Issued and outstanding shares.

607.0604 - Fractional shares.

607.0620 - Subscriptions for shares.

607.0621 - Issuance of shares.

607.0622 - Liability for shares issued before payment.

607.0623 - Share dividends.

607.0624 - Share rights, options, warrants, and awards.

607.0625 - Form and content of certificates.

607.0626 - Shares without certificates.

607.0627 - Restriction on transfer of shares and other securities.

607.0628 - Expenses of issue.

607.0630 - Shareholders’ preemptive rights.

607.0631 - Corporation’s acquisition of its own shares.

607.06401 - Distributions to shareholders.

607.0701 - Annual meeting.

607.0702 - Special meeting.

607.0703 - Court-ordered meeting.

607.0704 - Action by shareholders without a meeting.

607.0705 - Notice of meeting.

607.0706 - Waiver of notice.

607.0707 - Record date.

607.0709 - Remote participation in annual and special meetings of shareholders.

607.0720 - Shareholders’ list for meeting.

607.0721 - Voting entitlement of shares.

607.0722 - Proxies.

607.0723 - Shares held by intermediaries and nominees.

607.0724 - Acceptance of votes and other instruments.

607.0725 - Quorum and voting requirements for voting groups.

607.0726 - Action by single and multiple voting groups.

607.0728 - Voting for directors; cumulative voting.

607.0729 - Voting procedures; inspectors of election.

607.0730 - Voting trusts.

607.0731 - Voting agreements.

607.0732 - Shareholder agreements.

607.0741 - Standing.

607.0742 - Complaint; demand and excuse.

607.0743 - Stay of proceedings.

607.0744 - Dismissal.

607.0745 - Discontinuance or settlement; notice.

607.0746 - Proceeds and expenses.

607.0747 - Applicability to foreign corporations.

607.0748 - Shareholder action to appoint custodians or receivers.

607.0749 - Provisional director.

607.0750 - Direct action by shareholder.

607.0801 - Requirement for and duties of board of directors.

607.0802 - Qualifications of directors.

607.0803 - Number of directors.

607.0804 - Election of directors by certain voting groups; special voting rights of certain directors.

607.0805 - Terms of directors generally.

607.0806 - Staggered terms for directors.

607.0807 - Resignation of directors.

607.0808 - Removal of directors by shareholders.

607.08081 - Removal of directors by judicial proceedings.

607.0809 - Vacancy on board.

607.08101 - Compensation of directors.

607.0820 - Meetings.

607.0821 - Action by directors without a meeting.

607.0822 - Notice of meetings.

607.0823 - Waiver of notice.

607.0824 - Quorum and voting.

607.0825 - Committees.

607.0826 - Submission of matters for a shareholder vote.

607.0830 - General standards for directors.

607.0831 - Liability of directors.

607.0832 - Director conflicts of interest.

607.0833 - Loans to officers, directors, and employees; guaranty of obligations.

607.0834 - Liability for unlawful distributions.

607.08401 - Required officers.

607.0841 - Duties of officers.

607.08411 - General standards for officers.

607.0842 - Resignation and removal of officers.

607.0843 - Contract rights of officers.

607.0850 - Definitions.

607.0851 - Permissible indemnification.

607.0852 - Mandatory indemnification.

607.0853 - Advance for expenses.

607.0854 - Court-ordered indemnification and advance for expenses.

607.0855 - Determination and authorization of indemnification.

607.0857 - Insurance.

607.0858 - Variation by corporate action; application of ss. 607.0850-607.0859.

607.0859 - Overriding restrictions on indemnification.

607.0901 - Affiliated transactions.

607.0902 - Control-share acquisitions.

607.1001 - Authority to amend the articles of incorporation.

607.1002 - Amendment by board of directors.

607.10025 - Shares; combination or division.

607.1003 - Amendment by board of directors and shareholders.

607.1004 - Voting on amendments by voting groups.

607.1005 - Amendment before issuance of shares.

607.1006 - Articles of amendment.

607.1007 - Restated articles of incorporation.

607.1008 - Amendment pursuant to reorganization.

607.1009 - Effect of amendment.

607.1020 - Amendment of bylaws by board of directors or shareholders.

607.1021 - Bylaw increasing quorum or voting requirements for shareholders.

607.1022 - Bylaw increasing quorum or voting requirements for directors.

607.1023 - Bylaw provisions relating to the election of directors.

607.1101 - Merger.

607.1102 - Share exchange.

607.1103 - Action on a plan of merger or share exchange.

607.11035 - Shareholder approval of a merger or share exchange in connection with a tender offer.

607.1104 - Merger between parent and subsidiary or between subsidiaries.

607.11045 - Holding company formation by merger by certain corporations.

607.1105 - Articles of merger or share exchange.

607.1106 - Effect of merger or share exchange.

607.1107 - Abandonment of a merger or share exchange.

607.11920 - Domestication.

607.11921 - Action on a plan of domestication.

607.11922 - Articles of domestication; effectiveness.

607.11923 - Amendment of a plan of domestication; abandonment.

607.11924 - Effect of domestication.

607.11930 - Conversion.

607.11931 - Plan of conversion.

607.11932 - Action on a plan of conversion.

607.11933 - Articles of conversion; effectiveness.

607.11934 - Amendment to a plan of conversion; abandonment.

607.11935 - Effect of conversion.

607.1201 - Disposition of assets not requiring shareholder approval.

607.1202 - Shareholder approval of certain dispositions.

607.1301 - Appraisal rights; definitions.

607.1302 - Right of shareholders to appraisal.

607.1303 - Assertion of rights by nominees and beneficial owners.

607.1320 - Notice of appraisal rights.

607.1321 - Notice of intent to demand payment.

607.1322 - Appraisal notice and form.

607.1323 - Perfection of rights; right to withdraw.

607.1324 - Shareholder’s acceptance of corporation’s offer.

607.1326 - Procedure if shareholder is dissatisfied with offer.

607.1330 - Court action.

607.1331 - Court costs and counsel fees.

607.1332 - Disposition of acquired shares.

607.1333 - Limitation on corporate payment.

607.1340 - Other remedies limited.

607.1401 - Dissolution by incorporators or directors.

607.1402 - Dissolution by board of directors and shareholders; dissolution by written consent of shareholders.

607.1403 - Articles of dissolution.

607.1404 - Revocation of dissolution.

607.1405 - Effect of dissolution.

607.1406 - Known claims against dissolved corporation.

607.1407 - Other claims against dissolved corporation.

607.1408 - Claims against dissolved corporations; enforcement.

607.1409 - Court proceedings.

607.1410 - Director duties.

607.1420 - Administrative dissolution.

607.1422 - Reinstatement following administrative dissolution.

607.1423 - Judicial review of denial of reinstatement.

607.1430 - Grounds for judicial dissolution.

607.1431 - Procedure for judicial dissolution.

607.1432 - Receivership or custodianship.

607.1433 - Judgment of dissolution.

607.1434 - Alternative remedies to judicial dissolution.

607.1435 - Provisional director.

607.1436 - Election to purchase instead of dissolution.

607.14401 - Deposit with Department of Financial Services.

607.1501 - Authority of foreign corporation to transact business required; activities not constituting transacting business.

607.15015 - Governing law.

607.1502 - Effect of failure to have a certificate of authority.

607.1503 - Application for certificate of authority.

607.1504 - Amended certificate of authority.

607.1505 - Effect of a certificate of authority.

607.1506 - Corporate name of foreign corporation.

607.1507 - Registered office and registered agent of foreign corporation.

607.1508 - Change of registered office and registered agent of foreign corporation.

607.1509 - Resignation of registered agent of foreign corporation.

607.15091 - Change of name or address by registered agent.

607.15092 - Delivery of notice or other communication.

607.15101 - Service of process, notice, or demand on a foreign corporation.

607.1520 - Withdrawal and cancellation of certificate of authority for foreign corporation.

607.1521 - Withdrawal deemed on conversion to domestic filing entity.

607.1522 - Withdrawal on dissolution, merger, or conversion to certain nonfiling entities.

607.1523 - Action by Department of Legal Affairs.

607.1530 - Revocation of certificate of authority to transact business.

607.15315 - Reinstatement following revocation of certificate of authority.

607.1532 - Judicial review of denial of reinstatement.

607.1601 - Corporate records.

607.1602 - Inspection of records by shareholders.

607.1603 - Scope of inspection right.

607.1604 - Court-ordered inspection.

607.1605 - Inspection rights of directors.

607.1620 - Financial statements for shareholders.

607.1622 - Annual report for department.

607.1701 - Application to existing domestic corporation.

607.1702 - Application to qualified foreign corporations.

607.1703 - Interrogatories by department; other powers of department.

607.1711 - Application to foreign and interstate commerce.

607.1805 - Procedures for conversion to professional service corporation.

607.1904 - Estoppel.

607.1907 - Saving provision.

607.1908 - Severability clause.

607.193 - Supplemental corporate fee.