Ann Crotty
3 minute read
11 Feb 2021
7:05 am

Fair value, unfair fight over appraisal rights

Ann Crotty

Shareholders shouldn’t have to resort to legal action to get a company to buy back their shares at ‘fair value’.

Picture: iStock

Appraisal rights enable a shareholder to demand that the company buy back all their shares at “fair value”. In four cases brought before South African courts, the judge has ruled in favour of the minority shareholders seeking to enforce their appraisal rights. In each case, a relatively under-resourced party had to endure a long and costly legal battle to secure those rights against the unlimited resources available to corporate executives and the controlling shareholders. In handing down judgment last week in the most recent case – between fintech company Capital Appreciation (Capprec) and Rozendal Partners – Judge Leonie Windell of...