Attwood v Maidment & Ors

Attwood v Maidment & Ors

The court rejected the expert's 50% discount as inconsistent with its prior findings, holding that only a discount reflecting actual corporation tax paid should be applied. The court declined to revisit interest rates or adjourn for further evidence, and set a three-month period for payment of the balance of the purchase price, balancing fairness and practicality.

Parties
Petitioner: Allan Attwood; Respondent: Geoffrey Maidment; Respondent: Sarah Jane Maidment; Respondent: Annacott Holdings Limited
Jurisdiction
England and Wales
Judgment Date
16 July 2012
Procedural Posture
Company Petition / Post Judgment Hearing on Consequential Issues Including Valuation, Interest, and Timing of Payment
Outcome
Orders made on valuation, interest, and timing of payment; no further adjournment granted.
Legal Topics
Share Valuation, Unfair Prejudice, Buy Out Orders, Interest on Judgment Debts, Case Management
Company Law Share Valuation Unfair Prejudice Buy Out Orders Interest on Judgment Debts Case Management

Case Brief

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Parties

Allan Attwood

Petitioner

Geoffrey Maidment

Respondent

Sarah Jane Maidment

Respondent

Annacott Holdings Limited

Respondent

Procedural Posture

Company Petition / Post Judgment Hearing on Consequential Issues Including Valuation, Interest, and Timing of Payment

Legal Issues

  1. 1 What is the appropriate discount, if any, to apply to the net asset value of the shares for tax and marketability?
  2. 2 Should the court revisit the rates of interest previously ordered?
  3. 3 What is the appropriate timing for payment of the purchase price for the shares?

Ratio Decidendi

The court rejected the expert's 50% discount as inconsistent with its prior findings, holding that only a discount reflecting actual corporation tax paid should be applied. The court declined to revisit interest rates or adjourn for further evidence, and set a three-month period for payment of the balance of the purchase price, balancing fairness and practicality.

Court Disposition

Orders made on valuation, interest, and timing of payment; no further adjournment granted.

Orders

  • Discount of £200,000 (reflecting actual tax paid) to be applied to net asset value for share purchase price calculation.
  • First £500,000 to be paid within 14 days; balance to be paid within three months (by 15 October 2012), with liberty to apply if this proves unduly optimistic.