Does the 25% discount in the Shareholders’ Agreement or other form of minority discount apply?
British Columbia, Canada
The following excerpt is from Dais v Virvilis, 2018 BCSC 459 (CanLII):
None of the siblings submits that the 25% discount in the Shareholders’ Agreement or some other form of minority discount ought to be applied. In my view, this is entirely appropriate. In addition to the reasons already given, there is authority suggesting that a minority discount may be inappropriate in circumstances where the acquiring party is not truly acquiring a minority position but is instead consolidating an existing position, even where no fault is found: Pilch v. TemboSocial Inc., 2014 ONSC 5590 at paras. 51-54.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Can a shareholder of a closely held corporation change from an equal partner to a minority shareholder? (British Columbia, Canada)
Can a minority shareholder retain their relative share position in the absence of an agreement to the contrary? (British Columbia, Canada)
Does the parol evidence rule apply to a payment agreement where the payment agreement states that no refunds should be made unless the payment policy is less than one month's notice? (British Columbia, Canada)
Does a waiver of any right to apply to vary any term of the agreement between the parents apply to this court? (British Columbia, Canada)
What is the test for establishing a collateral agreement where the collateral agreement is inconsistent with or contradicts the written agreement? (British Columbia, Canada)
Does severance apply to cure a defective covenant in s. 7.2 of the Shareholders' Agreement? (British Columbia, Canada)
Does the law of trespass still apply in the context of a commercial parking agreement? (British Columbia, Canada)
Can a lawyer who entered into a fixed fee agreement with a client without the client signing a written agreement with respect to the amount of money that was deposited into his general account? (British Columbia, Canada)
What is the effect of a personal property agreement on property that would have occurred without the agreement? (British Columbia, Canada)
What is the scope of a director's fiduciary duty to a minority shareholder? (British Columbia, Canada)
