Minority shareholder disputes – Don’t always count on stock-purchase agreements

Description

Abstract: Business owners enter into stock-purchase agreements to facilitate buyouts upon certain triggering events, such as a shareholder’s death or divorce. But a recent Minnesota Court of Appeals case shows how courts sometimes disregard these agreements, leaving minority and controlling shareholders vulnerable to court-ordered buyouts. This article points out how valuators can help ascertain whether the appraisal provisions of a stock-purchase agreement remain relevant and provide updated appraisals when needed.