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CMA Final · Strategic Performance Management and Business Valuation · Laws and Compliance in Business Valuation

Under the Companies Act, 2013, for which of the following transactions is a valuation by a registered valuer expressly required?

A registered valuer's valuation is required for non-cash transactions with directors or connected persons, where assets are acquired or exchanged for consideration other than cash. Dividend declaration, auditor appointment and video-conference board meetings involve no mandatory valuation by a registered valuer.

  1. ADeclaring an interim dividend from free reserves
  2. BNon-cash consideration for a transaction with directors, where the asset is to be valued by a registered valuerCorrect
  3. CAppointment of a statutory auditor at the annual general meeting
  4. DHolding a board meeting through video conferencing

Explanation

The Act requires a registered valuer's report for acquisition of assets for consideration other than cash from directors or connected persons, as well as for matters such as preferential allotment, and similar events. Dividends, auditor appointments and video-conference meetings need no such valuation.

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