Kohli v Lit & Ors

Kohli v Lit & Ors

The fair value of the petitioner's shares is to be calculated by averaging the adjusted profits of Sunrise Radio Limited over four years, deducting tax, applying an appropriate price earnings multiple (adjusted for private company status), adding the value of profitable subsidiaries and relevant assets, deducting historical liabilities, and applying the petitioner's shareholding percentage, resulting in a value of £700,000 as at 13th November 2009.

Parties
Petitioner: Geeta Kohli; Respondents: Avtar Lit & Ors.
Jurisdiction
England and Wales
Judgment Date
16 December 2011
Procedural Posture
Company Law Petition / Valuation of Shares Following Order for Purchase
Outcome
Valuation of petitioner's shares determined at £700,000 as at 13th November 2009; further directions to be given after hearing counsel.
Legal Topics
Share Valuation, Minority Shareholder Rights, Expert Evidence, Purchase of Shares
Company Law Share Valuation Minority Shareholder Rights Expert Evidence Purchase of Shares

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Parties

Geeta Kohli

Petitioner

Avtar Lit & Ors.

Respondents

Procedural Posture

Company Law Petition / Valuation of Shares Following Order for Purchase

Legal Issues

  1. 1 What is the fair value of the petitioner's shares in Sunrise Radio Limited as at 13th November 2009 without any discount for minority holding?
  2. 2 What methodology and adjustments are appropriate in valuing the shares?

Ratio Decidendi

The fair value of the petitioner's shares is to be calculated by averaging the adjusted profits of Sunrise Radio Limited over four years, deducting tax, applying an appropriate price earnings multiple (adjusted for private company status), adding the value of profitable subsidiaries and relevant assets, deducting historical liabilities, and applying the petitioner's shareholding percentage, resulting in a value of £700,000 as at 13th November 2009.

Court Disposition

Valuation of petitioner's shares determined at £700,000 as at 13th November 2009; further directions to be given after hearing counsel.

Orders

  • Respondents to purchase petitioner's shares at £700,000 (subject to final orders).