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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Mergers

Kaveri Textiles Ltd, an Indian company, is merging with a company in a jurisdiction notified by the Central Government. The scheme requires valuation of Kaveri's shares. Under Section 247 of the Companies Act, 2013, who must appoint the valuer?

The valuer is appointed by the company's audit committee, or by the Board of Directors if the company has no audit committee. Section 247(1) places this power with the company's own governing bodies, not with the Registrar, the auditor or the RBI.

  1. AThe audit committee of the company, or the Board of Directors if there is no audit committeeCorrect
  2. BThe Registrar of Companies
  3. CThe statutory auditor of the company acting alone
  4. DThe Reserve Bank of India

Explanation

Section 247(1) requires valuation by a registered valuer appointed by the audit committee, or in its absence by the Board of Directors of that company. The Registrar, the auditor alone and RBI have no such appointing role under this section.

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