Document ID: chunk:federal_register_of_legislation:F2015L01072:body:0:p2
Version: federal_register_of_legislation:F2015L01072
Segment Type: other
Provision Reference: 
Character Range: 2756–4688

or otherwise satisfied at that time (disregarding any contingencies as to the provision of that return and any return that would not rank before ordinary shareholders upon a winding up).

       Step 3 Reduce the Step 1 amount by the Step 2 amount.

       Step 4  Divide the Step 3 amount by the total number of:

                (i)     ordinary shares; and
                (ii)   any preference shares that may participate together with any ordinary shares in the residual assets of the company upon a winding up;

              on issue in the company at that time.

Method 2

       (3)    A method that satisfies the requirements set out in sub-clause (4) is an approved valuation method.

       (4)    The requirements of this sub-clause are that the valuation of ordinary shares must be:

           (a)    performed by either:

                (i)      the chief financial officer of the company; or

                (ii)      a person having the knowledge, experience and training to perform such valuations; and

           (b)    in writing and fully documented, taking into account the following on a reasonable basis:

                (i)      the value of tangible and intangible assets of the company;

                (ii)      the present value of anticipated future cash flows;

                (iii)      the market value of similar businesses, including the use of earnings multiples;

                (iv)      uplifts and discounts for control premiums, lack of marketability and key person risk; and

           (c)    endorsed in a written resolution by the directors of the company as to the method used and the resultant value.

       (5)    If a company chooses to use a method of valuation that produces a value not less  than the amount which would be produced using a method under this approval that the company could otherwise apply, that valuation is taken to have been made under this approval.