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VALUATION CORP. MOSCOW, RUSSIA

E-mail: ocenka-co@mtu-net.ru   phone:+7 495 9993419  fax:+7 495 4666654

About us Valuation service Consultation

THE VALUATION CORP. CONDUCTS SHARES VALUATION IN MOSCOW, RUSSIA, AND OTHER RUSSIAN REGIONS

Russian law defines a share as a security which established the right of its owner (shareholder) to receive a part of the corporation’s profits in the form of dividends, to participate in the management of the corporation, and to receive a part of its property remaining after its liquidation. Bearer shares are permitted to be issued in a certain proportion to the issuer’s paid-in capital according to the ratio established by the Federal Commission on the Securities Market.

The per share market value of a stock will be different for blocks of different size. Depending on the level of management control in the corporation afforded by the block, it can represent either a controlling or a minority block or a blocking stake.

A controlling block of shares is an equity interest providing wide possibilities for exercising control over the company: to elect directors and determine their compensation, to influence the determination of the company’s development strategy, to make decisions on company reorganization or liquidation, transactions with its assets, payment of dividends and many others.

A minority block of shares does not provide such possibilities to its owner. A minority shareholder, although he or she participates in the company management, cannot exert any significant influence on the company management, and therefore a share in the minority block is worth less than a share in the controlling block. A blocking stake permits its owner to block decisions unfavorable for the owner at a general shareholders’ meeting and thus by the degree of influence is somewhere in-between the controlling and minority blocks.

Control premiums for Russian stocks under the current conditions on the Russian securities market range from 50% to 100% of the market prices for minority shares. In practice, stock valuations are most often performed for determining the market value of the stock in the following situations:

  • making a purchase-and-sale transaction;
  • shareholders demanding repurchase of their shares;
  • paying a contribution to the charter capital of another entity by shares;
  • evaluation of long-term financial investments made by enterprises and organizations;
  • valuation of banks and investment companies;
  • making financial decisions by company management.
A stock valuation report is often submitted to government authorities, such as the Federal Financial Rehabilitation Service, the Federal Financial Markets Service, the Russian Federal Property Fund, tax and judicial authorities. Submission of a stock valuation report is often specified in the listing of documents required by a particular authority. As an example, when more than 2% of the shares in a company is held by the government and/or a municipality, the involvement of a government supervisory authority in stock valuation is compulsory. This provision was carried into effect as from January 1, 2002 under Art. 77 of the Federal Law “On Joint-Stock Companies” (as amended on August 7, 2001).

Our experts have extensive experience in stock valuations conducted in various situations and will be glad to give you consultations on this issue.

 Shares valuation in Moscow, Russia. Valuation company START ALLIANCE

 
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