Fair Valuations On Minority Member Exit From A BVI Company

From time to time a British Virgin Islands ("BVI") company and its minority member(s) will not agree on certain matters affecting the minority's interests and objectives. As a business and investor friendly jurisdiction, BVI company law includes a regime for the minority to exit, and achieve a fair value for their shares (in cash), whilst ensuring that the company's transactions are not at risk of delay or derailment.

The BVI Commercial Court has taken a sensible and pragmatic approach so as to make the statutory process workable in practice. In this update, we digest the Court's guidance to date on the way in which the fair value of a minority's shares is reached.

The Right to Dissent