Fair Value Standard Applies in Dispute
Plaintiff William McCallum, former chief executive officer of Rosen's Diversified Inc., was terminated in 1991 and seeks to redeem his stock for $5 million.
ASA summer '98 conference coverage (continued from August issue)
Highlights from the ASA's summer 1998 conference.
Bornemann v. Bornemann
At issue is whether the trial court properly determined that certain stock options were available for equitable distribution.
Montgomery v. Aetna Plywood
At issue is the valuation of ESOP shares at the time of a stock transaction.
No Independent Appraiser Sought: ESOP Fiduciaries Clearly Liable for Breach
This case involves the sale of the controlling block of stock of Aetna Plywood Inc. held by the company's employee stock ownership plan (ESOP) to the company in a leveraged buyout.
McCallum v. Rosen's Diversified, Inc.
Former chief executive officer and minority stockholder alleges that the company's controlling shareholders acted unfairly toward him.
New size premiums allow for differences in systematic risk
Steven A. Albright inquired about two different numbers for the size premium based on Roger Ibbotson s work for SBBI . I have had the same question, as ValueSource Pro by John Wiley ...
Institute of Business Appraisers 20th anniversary conference open with IRS attorney; closes with estate planning attorney
n LITIGATING ISSUES IN THE FAMILY LIMITED PARTNERSHIP ARENA Melanie Urban, Esq. Internal Revenue Service Houston, TX Ms. Urban opened with a declaration that there are two things that the IR ...
Court Values Stock at Subsequent Sale Price
Although there are other assets at issue in this case, our review is limited to the value of 1,533.482 shares of a certain class of Sterling Holding Co. preferred stock as of the alternate estate valuation date, Sept. 18, 1992.
Estate of Trompeter v. Commissioner (I)
Issue was the fair market value of 1,533.482 shares of a certain class of Sterling Holding Co. preferred stock.
Reich v. Hall Holding Company, Inc.
At issue is breach of fiduciary duty and the valuation of stock as defined by ERISA.
Court rejects Black-Scholes method for appraising employee stock options
In determining the equitable distribution of property, the court determined whether or not it has the authority to consider, for property division purposes, the value and distribution of unv ...
Super ESOP champions launch two front campaign to promote ESOPs
The ESOP Association. "Super ESOP Champions Launch Two Front Campaign to Promote ESOPs." ESOP Report . July, 1997. p. 1. The article addresses legislation pending in both houses of Congress. Sena ...
Use of Experts: Implications of Howard V. Shay for Fiduciary Duties in ESOP Transactions
Schendt, Thomas G., H. Douglas Hinson and David A Benoit . "Use of Experts: Implications of Howard V. Shay for Fiduciary Duties in ESOP Transactions." Journal of Pension Planning & Compliance ...
Quantifying marketability discounts
I am in the process of completing my demonstration reports for my CBA. I used a 30% LOM discount after deriving a value for a closely held, small business using the Ibbotson build up method.
ASA conference offers valuable insights, part 1 of 2
Charlie Elliott of Howard Barker Frazier & Elliott chaired the business valuation portion of the American Society of Appraisers Annual International Conference held in Houston June 23-25. There wa ...
Chammah v. Chammah
At issue was the inclusion of unvested stock options and restricted stock in the marital estate.
How to sell stock to ESOP tax-free
Merton, William W. , " Structuring a 1042 Transaction ," unpublished paper presented at the May 1997 ESOP Association conference. By permission of McDermott, Will & Emery , this 17-page paper is ...
ESOP conference addresses whether appraiser may be a fiduciary
At The ESOP Association's Valuation Advisory Committee meeting May 14, Jared Kaplan , a well-known ESOP attorney with McDermott, Will & Emery , said, "If you are a financial advisor to a fiduc ...
ESOP Forms in Contention While Stock Value Plunges
The Food for Less ESOP provides for annual valuation of the stock, or more, often if the committee believes the value of the stock has changed substantially.
9th Circuit Denies PA&E Case Rehearing
In our December issue (pp. 11-12), we reported that the 9th Circuit reversed the District Court in Newman Howard v. Edward A. Shay and that defendants had filed a petition for rehearing by the 9th Circuit en banc.
Howard v. Shay (Supreme Court)
Petition for a writ of certiorari from Ninth Circuit opinion to U.S.Supreme Court is denied.
Reader inquires about different methods for valuing preferred stock
The newsletter is excellent. It continues to provide essential information on a timely basis. The interviews with various financial and legal professionals outside the business v ...
Mitchell v. Falley's
One issue in this case is whether the defendant's ESOP was required to pay plaintiffs based upon the December 31, 1991 valuation as opposed to a subsequent valuation date.
More Court Cases … ESOP: Faircloth
The court found that Lundy Packing Co., the ESOP administrator and trustee, were not required to disclose the ESOP appraisal report, despite it being requested by the participants.