Rolfe State Bank v. Charles a. Gunderson and Gloria K. Gunderson, Margaret Gunderson Moore, Clara Gunderson Hoover and Harold M. Hoover, Helen D. Gunderson, Deane C. Gunderson and Martha G. Carlson

APPEL, Justice.

In this case, the court is confronted with an issue of first impression regarding minority appraisal rights of the shareholders of a state bank in a reverse stock split. Specifically, we address whether Iowa Code section 524.1406(3)(a) (2009) 1 applies to state banks in a reverse stock split. The district court concluded that Rolfe State Bank [hereinafter the Bank] erroneously interpreted Iowa law to require the consideration of valuation factors recognized for federal tax purposes, including minority status and lack of marketability discounts, in appraising the value of…