Court Sets Value of Petitioner’s Stock in Special Proceeding Commenced Pursuant to BCL §623—Entity Leased 100 Acres of South Bronx Property—Developer’s Receipt of 13 Million Dollars of Publicly Traded Shares From Subtenant on Same Day Sublease Executed, Constituted Breach of Fiduciary Duty—Shares Should Have Gone to Corporate Entity—New York Does Not Permit Minority Discount for Shares of Closely Held Corporations—Court Applied 22.5 Percent Marketability Discount—1 Percent Loan Guarantee Fee Held Reasonable—Excess Working Capital—Reasonable Management Fees
This matter involved a special proceeding commenced pursuant to BCL §623 to determine the value as of March 12, 2007 (valuation date) of shares of stock which the petitioner owned in a company (“A”), whose major asset was a lease for approximately 100 acres of land (property).
