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Simple English definitions for legal terms

minority discount

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A quick definition of minority discount:

A minority discount is when the value of a business's shares is reduced because the owner only has a small part of the business. This is because the shares owned by someone who can control the business are worth more than those owned by someone who cannot. However, when shareholders disagree with a corporate decision and want to sell their shares, it is not fair to reduce the value of their shares just because they are a minority owner.

A more thorough explanation:

A minority discount is a reduction in the value of shares of a closely held business that are owned by someone who has only a minority interest in the business. This means that the value of the shares is lower because the owner does not have control over the business.

For example, if a business is worth $1 million and one person owns 51% of the shares, they have control over the business and their shares are worth $510,000. However, if another person owns 49% of the shares, they do not have control over the business and their shares may be worth less than $490,000 due to the minority discount.

When dissenting shareholders object to a corporate act, such as a merger, and become entitled to have their shares appraised and bought by the corporation, many courts hold that incorporating a minority discount into the valuation of the dissenters' shares is inequitable and is not permitted. This means that if a shareholder disagrees with a decision made by the company and wants to sell their shares, the company cannot use a minority discount to lower the value of their shares.

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Dkk
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I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
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i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
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Exactly. My version of that awful poem.
Dkk
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I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
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president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
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windyMagician
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Dkk
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try stretching it maybe to see what's up
windyMagician
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stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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