- 249 -
agreement. A minority shareholder could not exercise equivalent
control over a public company because voting power is generally
proportional to a shareholder’s ownership interest.
On the basis of the foregoing, we conclude that minority
interests in Eighty-Eight Oil are more marketable than either
minority interests in True Oil or restricted shares in a publicly
traded oil and gas marketing company. In addition, as previously
stated, we doubt the reliability of the entity values derived by
the parties due to the widely disproportionate capital accounts.
See supra p. 244-246. These facts suggest that no more than
nominal discounts, if any, would be appropriate for the subject
interests. We, therefore, adopt and apply respondent’s position
allowing no more than 10-percent marketability discounts from
minority value for the Eighty-Eight Oil interests valued as of
January 1, 1993, June 4, 1994, and June 30, 1994.
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