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

Mr. Raman Iyer, a registered valuer, held shares of Deccan Pharma Ltd during the entire period ending two years ago and sold them then. Deccan Pharma now plans a cross border merger and wishes to appoint him to value its shares. Under Section 247 of the Companies Act, 2013, what is the position?

He cannot be appointed. Section 247(2)(d) prohibits a valuer from valuing assets in which he had a direct or indirect interest during the three years before his appointment. Since he held the shares until two years ago, the look-back bar applies.

  1. AHe cannot undertake the valuation, since he had an interest in the asset within three years prior to the appointmentCorrect
  2. BHe can undertake it, since the bar applies only to a current interest
  3. CHe can undertake it if the Registrar permits
  4. DHe can undertake it only if the valuation is done jointly with another valuer

Explanation

Section 247(2)(d) bars a valuer from valuing assets in which he has a direct or indirect interest, or becomes so interested, during three years prior to his appointment or three years after the valuation. His interest ended two years ago, which is within the three-year window, so he is disqualified. A current-interest-only reading ignores the look-back period.

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