Section 247 Valuation by registered valuers
- Chapter
- XVII · Registered Valuers
- Amendments
- 3
- Last changed
- 24 March 2021
247. 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 Substituted by S.O. 3400(E), s. 2, with effect from 23 October 2017. Earlier read: "certain words"a
Substituted by S.O. 3400(E), s. 2, with effect from 23 October 2017. Earlier read: "certain words"person having such qualifications and experience, registered as a valuer and being a memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of an
Substituted by S.O. 3400(E), s. 2, with effect from 23 October 2017. Earlier read: "certain words"organisation recognised, 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 Substituted by Companies (Amendment) Act, 2017, s. 74, with effect from 9 February 2018. Earlier read: "during or after the valuation of assets"during a period of three years prior to his appointments as valuer or three years
Substituted by Companies (Amendment) Act, 2017, s. 74, with effect from 9 February 2018. Earlier read: "during or after the valuation of assets"after the valuation of assets was conducted by him.
(3) If a valuer contravenes the provisions of this section or the rules made thereunder, the valuer shall be Substituted by S.O. 1303(E), with effect from 24 March 2021. Earlier read: "certain words"liable to a penalty of fifty thousand 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.