JOHN GILBERT v. PRAGUE ENTERPRISES LTD AND OTHERS

JOHN GILBERT v. PRAGUE ENTERPRISES LTD AND OTHERS

Net asset valuation as at the relevant date is appropriate; contemporaneous sales and Mr. Fahys letter are unreliable and excluded; no majority control premium justified because there is no evidence of goodwill or maintainable earnings; damages for the plaintiff's 51% shares assessed at HK$176,225 with interest and costs.

Citation
JOHN GILBERT v. PRAGUE ENTERPRISES LTD AND OTHERS
Parties
Plaintiff: John Gilbert; 1st Defendant: Prague Enterprises Limited; 2nd Defendant: Anthony Fahy; 3rd Defendant: Yeung Suk Tao
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 October 1992
Case Number
HCA2200/1985
Procedural Posture
Assessment of Damages (civil) / Assessment Hearing / Post Trial Valuation
Outcome
Judgment for plaintiff: damages assessed at HK$176,225; interest and costs ordered.
Legal Topics
Share Valuation, Net Asset Valuation, Earnings Valuation, Goodwill, Interest, Costs
Source Language
EN
Company Law Commercial Law Civil Damages Share Valuation Net Asset Valuation Earnings Valuation Goodwill Interest +1 more

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Parties

John Gilbert

Plaintiff

Prague Enterprises Limited

1st Defendant

Anthony Fahy

2nd Defendant

Yeung Suk Tao

3rd Defendant

Procedural Posture

Assessment of Damages (civil) / Assessment Hearing / Post Trial Valuation

Legal Issues

  1. 1 Appropriate method for valuing a 51% shareholding
  2. 2 Relevance and admissibility of contemporaneous share transactions
  3. 3 Whether a premium for majority control is justified

Ratio Decidendi

Net asset valuation as at the relevant date is appropriate; contemporaneous sales and Mr. Fahys letter are unreliable and excluded; no majority control premium justified because there is no evidence of goodwill or maintainable earnings; damages for the plaintiff's 51% shares assessed at HK$176,225 with interest and costs.

Court Disposition

Judgment for plaintiff: damages assessed at HK$176,225; interest and costs ordered.

Orders

  • Damages assessed at HK$176,225 as at 11 May 1984
  • Interest at 10% from date of issue of the writ to date of this assessment (order nisi)