What is Valuation by registered valuers? Section 247 of Indian Companies Act 2013
Valuation by registered valuers is defined under Section 247 of Indian Companies Act 2013. Provisions under this Section is:
Section 247 of Indian Companies Act 2013 "Valuation by registered valuers"
(1) Where a valuation is required to be made in respect of
any property, stocks, shares, debentures, securities or
goodwill or any other assets (herein referred to as the
assets) or net worth of a company or its liabilities under
the provision of this Act, it shall be valued by a person
having such qualifications and experience and registered as
a valuer in such manner, on such terms and conditions as may
be prescribed and appointed by the audit committee or in its
absence by the Board of Directors of that company.
(2) The valuer appointed under sub-section (1) shall, -
(a) make an impartial, true and fair valuation of any assets which may be required to be valued;
(b) exercise due diligence while performing the functions as valuer;
(c) make the valuation in accordance with such rules as may be prescribed; and
(d) not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets.
Punishment for violation of Section 247 of Companies Act 2013 regarding valuation by valuer
(3) If a valuer contravenes the provisions of this section or the rules made there under, the valuer shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees:
Provided that if the valuer has contravened such provisions with the intention to defraud the company or its members, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
(4) Where a valuer has been convicted under sub-section (3), he shall be liable to -
(i) refund the remuneration received by him to the company; and
(ii) pay for damages to the company or to any other person for loss arising out of incorrect or misleading statements of particulars made in his report.
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