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Question

Where a valuation is required to be made in respect of any assets or net worth of a company or its liabilities under the Companies Act, it shall be valued by a person having such qualifications and experience, registered as a valuer and being a member of an organization recognized, in such manner, on such terms and conditions as may be prescribed and appointed by __________________________

A A Director Correct Answer Incorrect Answer
B The audit committee Correct Answer Incorrect Answer
C In the absence of the audit committee by the Board of Directors Correct Answer Incorrect Answer
D Either a or b Correct Answer Incorrect Answer
E Either b or c Correct Answer Incorrect Answer

Solution

Explanation: Section 247. Valuation by registered valuers: (1) Where a valuation is required to be made in respect of any property, stocks, shares , debenture , 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 a person having such qualifications and experience, registered as a valuer and being a member of an organization recognized, 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. 

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