Advanced Communication Design, Inc. v. Follett (II)

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August 3, 2000

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4899 Communications Services, NEC
517919 All Other Telecommunications
judicial dissolution
buy-sell agreement, fair value, breach of fiduciary duty, discount for lack of marketability (DLOM), going concern, minority shareholder
Advanced Communication Design, Inc. v. Follett (II)
615 N.W. 2d 285, 2000 Minn. LEXIS 417
US
State Court
Minnesota
Supreme Court
Stringer

Summary

At issue is whether, in a court-ordered buy-out of a minority shareholder pursuant to Minn. Stat. § 302A.751 (1998), a marketability discount should be applied to the value of the shares.

See Also

Extraordinary Circumstances Warrant Marketability Discount in Buyout

Legal and Court Case Update
October 2000

In November 1999, the Minnesota Court of Appeals ruled, in a case of first impression in Minnesota, that a marketability discount should not be applied to determine the fair value of Brian Follett's one-third interest in Advanced Communication Design Inc. (ACD).