Reflection on the use of specific valuation methods in determining the amount of the adequate compensation and share settlement in judicial practice
Abstract
The article deals with the issue of determining the value of the adequate compensation and share settlement in case of the termination of the member's participation in business corporations. Specifically, it is the determination of the amount of the adequate compensation in the case of termination of participation in a limited liability company, a public company or a limited partnership company, as well as share settlement in the squeeze-out and sell-out, compensation in the obligatory takeover bid and in the transfer of all the property to a one company memeber.
The author opinion is that the law determines, although not explicitly, a certain logic of compensation and settlement, which is often not respected in practice. Certain limitations in determining the value of a company or its part results from actual stituation on the market.
The author thus points out the legal and real limits of the calculation of the value of the compensation or settlement, which should be taken into consideration by courts and experts, and offers a solution to question "How to deal with these limits and to determine the value of a company or its part for every form of business corporations".