Calif. Corp Code CCC Section 2000 Appraisal
In California, a partner or shareholder owning 33.3% of a corporation is entitled to begin dissolution measures, even if the other shareholders or partners do not wish to dissolve the corporation. However, California Corporations Code Section 2000 provides the remaining shareholders with an ability to try to stop the dissolution, via purchasing the 50% shares. The remaining shareholders in this case, will apply to the court, seeking the opportunity to buy the former partner out, thus temporarily halting the dissolution process. The court will then assign three business appraisers to value the shares, to arrive at a fair value. The expertise of BEACo's business appraisers has earned our team countless appointments to valuate businesses under court direction, in conjunction with California Corporate Code Section 2000.
The term "fair value" is not synonymous with "fair market value". This is a topic in and by itself.
Our firm has been appointed by the Court in over 20 Section 2000 assignments. On two occasions, valuations prepared by our firm were affirmed by the California Court of Appeal. One case involved a corporate dissolution under Section 2000 of the California Corporations Code which was affirmed as to approach and opinion of value in Abrams vs. Abrams-Rubiloff & Co. 114 Cal. App. 3d 240, 170 Cal. Rptr. 656 (1980). The other matter involved a dissolution of marriage matter, affirmed as to approach and opinion by the California Court of Appeal (Marriage of Hilliard, 2nd Civ.No. 52898, unpublished). Superior Court Case No. D 858 256.