MCA has issued Order No. S.O (E) on 23rd October, 2017 to remove the difficulty of having no reference to Organisation to which a Valuer, with reference to the provisions of section 247 of the Companies Act, 2013, may belong. Brief summary of the Order is as under:
Sub-section (1) of section 247 of the Companies Act,2013 provides that where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities, 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.
Whereas, a difficulty has arisen in view of the fact that there are a number of different organisations dealing with various, distinct group of assets, such as land and building, machinery and equipment having separate set of valuers for valuation. Unless these different organisations are recognised, it would be difficult to ensure the required level of regulation for the valuers by registering them directly with the Central Government. There was a need to provide clarity and remove the difficulty of having no reference to an organisation to which the valuer may belong. Accordingly, the sub-section (1) of section 247 has been revised and the words “being a member of an organisation recognised in such manner” have been added.
Extract of modified sub-section (1) of section 247 –
“a person having such qualifications and experience, registered as a valuer and being a member of an organisation recognised in such manner, on such terms and conditions as may be prescribed.
The said Order can be accessed from the following link: MCA Order_S.O(E)_23.10.2017_Companies (Removal of Difficulty) 2nd Order_Reg. Valuer