'Devastating' Cross-Exam in Shareholder Buy-out Case Leads to Discredited Expert

May 2010
Business Valuation Update;May2010, Vol. 16 Issue 5, p19
The article discusses a court case wherein a shareholder of an equipment company wanted a buy-out of his share. A federal bankruptcy court in Texas found that the company paid shareholder-worker bonuses in disguised dividends to evade double taxation. The court estimated that the shareholder still owns 8% interest at the company and presented three ways to value it such as the shareholder's expert valuation, book value and buy-sell provision under the shareholders' agreement of the company.


Related Articles

  • Double Tax on Dividends is Hardship on Many Who Have Moderate Incomes.  // Saturday Evening Post;8/28/1954, Vol. 227 Issue 9, p12 

    The author reflects on the impact of double taxation on dividends to corporate stockholders with moderate income in the U.S. He discusses that the government's plan to grant some tax relief on stockholders or the possible repulsion of the double taxation on corporate income is favorable for most...

  • Is dividend income really taxed twice? McQuaid, John G. // America;4/2/1955, Vol. 93 Issue 1, p11 

    The author examines whether double taxation of dividend income exists in the U.S. He points out that claiming double taxation implies that the income of the corporation is the income of its stockholders. He argues that taxation of dividend income cannot be considered double taxation of the...

  • Double tax relief system is ruled unlawful.  // Accountancy;Jan2009, Vol. 142 Issue 1385, p69 

    The article reports on a court ruling by the European Union's (EU) High Court which found that Great Britain's double tax relief system infringes European law in such cases where dividends have been paid to Great Britain from EU-based companies and the Great Britain shareholder owns more than...

  • Jubilee update on acquisition.  // World Mining News;6/21/2013, p3 

    The article discusses a court case wherein the Federal Court of Australia ordered PLA on June 20, 2013 to hold a meeting of PLA stockholders to consider and vote on the Scheme of Arrangement between PLA and Jubilee.

  • USA Net stockholders file suit over sale to Vivendi U.  // Daily Variety;12/31/2001, Vol. 274 Issue 21, p3 

    Reports the lawsuit filed by USA Networks stockholders against chairman Barry Diller and other directors in Delaware Chancery Court. Allegation of selling the entertainment business of the company to Vivendi Universal; Names of directors included on the lawsuit; Comments of Ruth and Abraham...

  • Shareholders threaten suit vs. EM.TV. Meza, Ed // Daily Variety;03/08/2001, Vol. 271 Issue 6, p28 

    Reports on the threat of shareholders to file a joint lawsuit against German network EM.TV. if it fails to give shareholders compensation. Grounds for the suit; Refusal of network officials to comment on the claim; Consideration of the securities regulator of a formal insider-trading investigation.

  • Nine questions and answers about exclusive forum provisions for stockholder litigation. Batts, Ed // Venulex Legal Summaries;2014Q1, p1 

    The article presents answers to questions related to exclusive forum provisions for stockholder litigation in Delaware, including the driving forces behind the adoption of the provisions, mechanics of adopting an exclusive jurisdiction provision and differences for categories of public companies.

  • HCA battles legal obstacles. Galloro, Vince // Modern Healthcare;10/30/2006, Vol. 36 Issue 43, p12 

    The article reports that lawyers for HCA have successfully overcome a challenge related to the $33 billion leveraged buyout. However, another legal hurdle emerged. A lawsuit was filed in New Hampshire that seeks to delay the buyout while a foundation tries to assert its right to buy 165-bed...

  • lawsuit: smulyan angling for buyout. Andrews, Greg // Indianapolis Business Journal;7/2/2012, Vol. 33 Issue 18, p1A 

    The article reports on the lawsuit filed by a group of shareholders of Emmis Communications Corp. against founder and chief executive officer (CEO) Jeff Smulyan for his alleged plan to take the Indianapolis, Indiana-based media company into private. It is alleged that Smulyan has been planning...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics