| Commentary

127.6 Discounts and premiums

| Commentary

127.6 Discounts and premiums

Many contractual valuation provisions require a minority shareholding to be discounted and a majority shareholding conferring control of the company to be subject to a premium1. Where the company is in effect a quasi-partnership2, the court will not normally apply any discount to the value of the petitioner’s shares just because they form a minority shareholding3. There are exceptions to this, for instance, where the petitioner bought the shares at a discount from the majority member or where the petitioner is partly to blame for the conduct of which he

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