Share Buyouts (applicability of Discounts)
Published on 30th April, 2021 by Mark Lee
In what the Court of Appeal described as a “unique” case, the apex court considered and clarified issues in relation to the court’s jurisdictional basis for exercising its power under section 216(2) of the Companies Act (Cap.50), the nuances of buyout orders made and the applicability of discounts when valuing a party’s shareholding for the purpose of a buyout. In particular, the Court of Appeal examines the issue of discounts for (a) lack of control (or minority discount) and (b) lack of marketability. In this article, our Joint Managing Director Mr Mark Lee looks deeper into the Court of Appeal’s written judgment in Liew Kit Fah v Koh Keng Chew  1 SLR 275.
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