CHAPTER XVII : REGISTERED VALUERS
Section 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 1[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 2[during a period of three years prior to
his appointment as valuer or three years 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
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.
|