Valuation of husband’s shareholdings

Instructed as a Shadow Expert on behalf of the wife in matrimonial proceedings to consider the report of a Single Joint Expert valuing her, and her husband’s, minority shareholdings in a company.

Our work established that the SJE had not applied the relevant clauses set out within the company’s Articles of Association, which stated that no minority interest discount should be applied to the sale of the shares.  The SJE had applied a minority discount of 70% to the wife’s shareholding.  This matter was brought to the SJE’s attention, who conceded their mistake, thereby increasing significantly the value of both parties shareholdings in the company.  The matter settled shortly afterwards.

This illustrates the importance of examining the work of SJE’s and ensuring it reflects what is set out within the company’s Articles of Association when valuing its shares.