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Buachaill, Barrister
Category: UK Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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How do you value the shares of a company upon the death of

Customer Question

How do you value the shares of a company upon the death of one of its directors/shareholder please
Submitted: 1 year ago.
Category: UK Law
Expert:  Buachaill replied 1 year ago.

1. Dear Cecil, in order to value shares in a limited company, you first need to put a value upon the business of the company a and how it is trading. Then you can get a value on the overall net worth of a company. It is then simple to put a value upon the individual shares in the company. Accordingly, the first thing I would suggest you do is to hire a professional accountant or valuer to value the business of the company. They can look at the accounts and value the business as a going concern. Then a value can be put upon the shares in the company.

Expert:  Buachaill replied 1 year ago.

2. If there is a firm of accountants currently preparing the accounts of the limited company, then ask them do they have a valuer who can value the business. The company accountants will have a clear value of the business as they will have worked with the company for a number of years.

Expert:  Buachaill replied 1 year ago.

3. If there is likely to be a dispute about the valuation placed on the shares, then I would suggest that an independent valuer be appointed. However, if it is simply valuing the shares for the purposes of Inheritance TAx, then the company accountants can be used.

Expert:  Buachaill replied 1 year ago.

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