What valuation standard applies in S994 shareholder disputes?

In unfair prejudice petitions under Companies Act 2006 s994, courts typically order valuation at fair value rather than fair market value. This usually means minority discounts are disapplied - the petitioner's shares are valued as a proportionate share of the whole company, reflecting the unfairness of the treatment received.

Does a shareholder dispute need a Single Joint Expert?

In many S994 cases, particularly in the High Court, each party appoints their own valuation expert. The experts are then required to meet, produce a joint statement identifying agreed methodology and areas of disagreement, and give evidence at trial. In lower-value cases, courts may direct a Single Joint Expert.

Shareholder Dispute & S994 Petition Business Valuation Expert Witness

Shareholder disputes under Companies Act 2006 section 994 (unfair prejudice) frequently turn on the value of the petitioner's shares. Courts order valuation at fair value - a legal standard that often differs materially from fair market value, particularly where minority discounts are disapplied because the petitioner was unfairly treated.

Business valuation expert witnesses in S994 proceedings analyse audited accounts, management information, and comparable transactions. They justify methodology (maintainable earnings, DCF, or NAV as appropriate), attend joint expert meetings under CPR Practice Direction 35, and prepare joint statements identifying agreed and disputed matters before trial in the High Court Chancery Division or County Court.

Our network includes experts experienced in majority/minority shareholding valuations, control premiums, and the fair value debate. They produce CPR Part 35 compliant reports suitable for directions hearings, without prejudice expert meetings, and oral evidence.

Common questions

What valuation standard applies in S994 shareholder disputes?: In unfair prejudice petitions under Companies Act 2006 s994, courts typically order valuation at fair value rather than fair market value. This usually means minority discounts are disapplied - the petitioner's shares are valued as a proportionate share of the whole company, reflecting the unfairness of the treatment received.
Does a shareholder dispute need a Single Joint Expert?: In many S994 cases, particularly in the High Court, each party appoints their own valuation expert. The experts are then required to meet, produce a joint statement identifying agreed methodology and areas of disagreement, and give evidence at trial. In lower-value cases, courts may direct a Single Joint Expert.

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