Shareholder Dispute Valuation Expert Witness UK

Shareholder dispute valuation expert witnesses provide independent opinions on the fair value of shares in unfair prejudice petitions under Companies Act 2006 s994. Courts typically order valuation at fair value, which usually means minority discounts are disapplied and the petitioner's shares are valued as a proportionate share of the whole company.

Business valuation methodology in S994 proceedings requires careful attention to the fair value standard. The valuation expert must address whether a minority discount is appropriate on the specific facts, justify the chosen valuation methodology (maintainable earnings, DCF, or NAV), and prepare for joint expert meetings where both parties' valuation experts seek to narrow areas of disagreement.

In Inspired Education Online Ltd v Crombie [2025] EWHC 1236 (Ch), the judge found that the claimant's valuation expert's evidence was fatally undermined by instructions not consistent with commonly used definitions of market value, a lack of rigour in approach to evidence, and a somewhat partial approach. This is a strong warning to solicitors about the quality of instructions and expert independence required in valuation disputes.