Family company share valuation

LouiseTonkin Registered Posts: 2 New contributor 🐸
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



  • davealucas
    davealucas MAAT Posts: 139 Dedicated contributor 🌟 🐵 🌟
    @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
    LouiseTonkin Registered Posts: 2 New contributor 🐸
    Thanks so much.
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