Arbitration

Is there a minority discount when Israeli courts order a buyout?

Generally no. In oppression proceedings, Israeli courts apply a "fair value" standard rather than fair market value, and consistently decline to apply a minority discount. The rationale is that the petitioner is being forced out by the majority's own wrongful conduct — applying a discount would reward that conduct. The minority's shares are therefore valued at their proportional share of the company's total enterprise value.

From the full guide: Shareholder Disputes in Israel: What Foreign Investors Need to Know


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