Determining the fair price of mandatory sale of shares

Keywords: mandatory sale of shares, squeeze-out, mandatory sale price of shares, fair value of shares, majority shareholder, minority shareholder, joint stock company


The article is devoted to the analysis of the provisions of the legislation and legal doctrine on determining the fair price of shares
in the squeeze-out procedure in Ukraine, European countries and the United States. It has been established that proper legislative regu -
lation of the fair price mechanism ensures a balance between the interests of majority and minority shareholders in the squeeze-out procedure.
The provisions of the Law of Ukraine “On Joint Stock Companies” concerning the determination of the price of mandatory sale
of shares, materials of court practice, the practice of the NSSMC on this issue are analyzed. The essence of the mechanism to determine
the fair price of the shares as part of the procedure of “squeeze-out”.
Based on the experience of the United States and European countries, it is generalized that although the legal approaches to
squeeze-out and determining the fair price of shares in different countries differ, some general trends in legal regulation can be identified.
Particular attention was paid to such components of the squeeze-out procedure as standards (criteria) for determining the value
and the subjects of determining the share price. It has been established that the subjects of determining the share price can be a controlling
shareholder, courts, an independent expert, a state regulator or a joint stock company.
The concept of “criteria (standards) for determining the value of shares” as enshrined in the legislation of economic indicators,
on the basis of which the entity sets the redemption price of shares. The most common standards for determining the value of shares used in foreign legal systems are described, such as: market value, third party sale (liquidation) value and going concern value. It was
proved that the studied standards can be used as a boundary and fixed.


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How to Cite
Doroshenko, L., & Pilyavets, V. (2020). Determining the fair price of mandatory sale of shares. Law Review of Kyiv University of Law, 1(3), 156-162. Retrieved from
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