MINORITY DISCOUNTS

By , June 16, 2016 7:00 pm

LLC lawyers often have to advise their clients about minority discounts of the value of their membership rights when these lawyers are forming LLCs for their clients and negotiating the terms of their operating agreements; when they are negotiating member buy-outs; and on many other occasions when disputes about discounts arise among the members.  The post by Peter Mahler under the link below addresses a recent New York partnership case, called Congel v. Malfitano, in which the court imposed an enormous 66% minority discount on the value of a partnership interest of a partner who wrongfully dissolved the partner’s partnership.  I can envision more than a few circumstances in which I’ll want to cite the Congel case in LLC negotiations.

Here is the link:

http://www.nybusinessdivorce.com/2016/05/articles/buyout/partner-wrongfully-dissolved-partnership-hit-whopping-66-minority-discount/#

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