| Commentary

119.2 Valuation of the shares

| Commentary

119.2 Valuation of the shares

The valuation of the shares is likely to be the most controversial part of the pre-emption process. It is generally in everyone’s interest for a disaffected shareholder to go quietly. This is unlikely to happen if he feels that he is not getting a fair value for his shares. It is vital therefore for the agreement to provide for a fair valuation of the outgoing shareholder’s shares. There are various ways of doing this. The agreement may provide for the outgoing shareholder to receive an amount equal to a specified proportion of the value of

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