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CS Executive · Corporate Accounting and Financial Management · Related Aspects of Company Accounts

Under the Companies Act, 2013, where a valuation of shares or goodwill of a company is required under the Act, by whom must it be made?

Valuation of shares or goodwill under the Act must be made by a registered valuer. The valuer is appointed by the company's audit committee or, where there is none, by its Board of Directors, as laid down in Section 247(1).

  1. AThe statutory auditor appointed at the annual general meeting
  2. BA registered valuer appointed by the audit committee or, in its absence, by the Board of DirectorsCorrect
  3. CA chartered accountant appointed by the Registrar of Companies
  4. DA registered valuer appointed by the Tribunal

Explanation

Section 247(1) requires valuation of property, stocks, shares, debentures, securities or goodwill to be made by a registered valuer appointed by the audit committee, or by the Board if there is no audit committee. The auditor, the Registrar and the Tribunal are not given this role by the section.

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