Company Insurance Policy on Dead Co-Owner at Center of Valuation Dispute

Business Valuation UpdateVol. 3 No. 5
Legal and Court Case Update
May 1997

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3621 Motors and Generators
335312 Motor and Generator Manufacturing
buy/sell agreement
Miller v. Electrical Equipment
1997 Del. Ch. LEXIS 20
February 18, 1997
US
State Court
Delaware
Court of Chancery
Steele

Summary

At issue is whether the entire proceeds of a $100,000 life insurance policy the company purchased for the purpose of: (1) providing key person insurance; and (2) providing funding for the surviving owner to purchase decedent's shares of the electrical service company from decedent's estate should represent the full value of decedent's 50% ownership.

See Also

Miller v. Electrical Equipment

Full Text of Court Cases
February 18, 1997

At issue is a dispute between the deceased owner's estate and the surviving owner over the value of a fifty percent interest in the company that focuses on the allocation of the policy proceeds.