226Valuation principles

226 Valuation principles

226 Valuation principles

(1) In determining the valuation of any bus service assets in question in a valuation arbitration, the arbitrator must apply the following principles—

(a) the valuation of the asset must be determined by reference to the market value of the asset having regard to the following—

(i) the price that a willing, but not anxious, purchaser would be prepared to pay for the asset for use in the provision of a regular bus service,

(ii) the price that a willing, but not anxious, vendor would accept as payment for the asset,

(b) the asset’s value to the applicant as a going concern must be included in the valuation,

(c) the value of any intellectual property of the applicant (such as logos and trademarks) used in connection with the asset must not be included in the valuation.

Note.

The term bus service asset is defined in clause 39(1) of Schedule 3 to the Act to exclude any goodwill. Accordingly, an arbitrator in a valuation arbitration will not be able to take into account the value of any goodwill.

(2) This clause prevails over the provisions of section 22 of the Arbitration Act to the extent of any inconsistency.