Arnaud v. Stockgrowers State Bank

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Full Text of Court Cases
November 5, 1999

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6022 State Commercial Banks
522190 Other Depository Credit Intermediation
shareholder dissent/oppression
fair value, holding company
Arnaud v. Stockgrowers State Bank
992 P.2d 216,1999 Kan. LEXIS 645
US
State Court
Kansas
Superior Court
Abbott

Summary

At issue is the fair value of fractional shares that resulted from a reverse stock split intended to eliminate the minority shareholder's interest in the corporation.

See Also

Kansas Supreme Court Disallows Minority and Marketability Discounts in Shareholder Freeze-Out

Legal and Court Case Update
December 1999

The Supreme Court of Kansas heard an issue of first impression in this case: "Is it proper for a corporation to determine the 'fair value' of a fractional share pursuant to K.S.A. 17-6405 by applying minority and marketability discounts when the fractional share resulted from a reverse stock split intended to eliminate the minority shareholder's interest in the corporation?"