Chapter 25 - The shareholder fight
Aurelia’s sixteen-percent stake became the final active family conflict.
She wanted liquidity for:
Legal fees.
Restitution.
Living expenses after release.
She offered to sell eight percent back to the company.
Price:
Based on her valuation.
Special committee valuation:
Lower.
Difference:
$3.2 million.
Huge.
Why?
Aurelia’s appraiser applied a strategic premium because family shares rarely became available.
Company appraiser applied:
Minority discount.
Transfer restrictions.
Limited marketability.
Neither absurd.
Negotiations failed.
Under shareholder agreement, she could not freely sell to outsiders without offering family/company first.
She threatened arbitration.
The company agreed.
Independent arbitrator set formula-based fair value between positions.
Result:
Company repurchased six percent.
Aurelia kept ten percent.
Proceeds funded:
Restitution.
Taxes.
Legal obligations.
A reserve for civil settlement.
She remained a shareholder.
I disliked it.
May you like
Accepted it.
Ownership rules cannot become punishment tools whenever siblings hate each other.
