Family company share valuation

LouiseTonkin

One of the shareholders of our client (not a director) died unexpectedly. His will states that his shares will go to the beneficiaries of his estate - also existing shareholders in the company.
The articles of association state that share sales should be at fair value but can this be dealt with as a share transfer at share cost price or does the company need to undertake a valuation process and the shares valued accordingly? I can't find anything under companies house or accounting rules.

Thank you

Louise

davealucas

@LouiseTonkin This isn't a share sale, it is a transfer to beneficiaries under the terms of a will. There may be a valuation necessary if Inheritance Tax is payable, but other than that there is no change to the number of shares issued so a valuation would not be necessary.

LouiseTonkin

Thanks so much.