MINORITY DISCOUNT
minority discount. A reduction in the value of a closely held business’s shares that are owned by someone who has only a minority interest in the business. ? The concept underlying a minority discount is recognition that controlling shares ¡ª those owned by someone who can control the business ¡ª are worth more in the market than noncontrolling shares. But when dissenting shareholders object to a corporate act, such as a merger, and become entitled to have their shares appraised and bought by the corporation, many courts hold that incorporating a minority discount into the valuation of the dissenters’ shares is inequitable and is not permitted. See APPRAISAL REMEDY . [Cases: Corporations 182.4(5), 584. C.J.S. Corporations ¡ì¡ì 348, 799¨C801.]What is the Chinese interpretation of MINORITY DISCOUNT?
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