9 May 2013
The Independent Valuer was appointed in September 2008 to determine the amount of any compensation payable by HM Treasury to former shareholders of Northern Rock and to those whose rights to receive shares were extinguished when Northern Rock was transferred into temporary public ownership.
Having applied the valuation assumptions that he was required by law to apply, the Independent Valuer determined that there was no value in the shares (or right to receive shares) as at the valuation date and therefore that no compensation is payable to former shareholders (and to those whose rights to receive shares have been extinguished).
Any affected party who was dissatisfied by the Independent Valuer’s determination could refer the matter to the Upper Tribunal for appeal.
On 6 October 2011, the Upper Tribunal delivered its ruling and concluded that the Independent Valuer was correct in his interpretation of the statutory provisions, that his application of them to the facts was reasonable and professional, and that the nil valuation should stand.
One of the appellants before the Upper Tribunal then appealed to the Court of Appeal. On 9 May 2013, the Court of Appeal handed down its judgment, in which it upheld the Independent Valuer’s interpretation of the statutory valuation assumptions.
Accordingly, the Independent Valuer’s determination that no compensation is payable to former Northern Rock shareholders (and to those whose rights to receive shares have been extinguished) stands.
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