{"id":51028,"date":"2022-11-30T11:43:44","date_gmt":"2022-11-30T06:13:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51028"},"modified":"2022-11-30T11:43:44","modified_gmt":"2022-11-30T06:13:44","slug":"companies-registered-valuers-and-valuation-amendment-rules-2022","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/companies-registered-valuers-and-valuation-amendment-rules-2022\/","title":{"rendered":"Companies (Registered Valuers and Valuation) Amendment Rules, 2022"},"content":{"rendered":"\n<p>The Ministry of Corporate\nAffairs notified the Companies (Registered Valuers and Valuation) Amendment\nRules, 2022, on November 21, 2022, in order to amend the extant <strong>Companies\n(Registered Valuers and Valuation) Rules, 2017<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/Companies_Registered_Valuers_Rules_2017.pdf\"><strong>[1]<\/strong><\/a><\/sup>. The notion of a\n&#8220;registered valuer\u201d was established with the insertion of Section 247\nunder the Companies Act, 2013, along with the Companies (Registered Valuers and\nValuation) Rules, 2017. Scroll down and check more details regarding Companies (Registered Valuers and Valuation)\nAmendment Rules, 2022.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who is a Registered Valuer?<\/h2>\n\n\n\n<p>A registered valuer is a professional who can evaluate the value of any\nproperty, stocks, shares, debentures, securities\/goodwill or any other asset or\nnet worth of the company or its liabilities under the provisions of the\nCompanies Act, 2013.<\/p>\n\n\n\n<p>A registered valuer may be an electrical or mechanical engineer (for\nvaluation of plant and machinery) or a civil engineer or architect (for\nvaluation of land and building) or a chartered accountant (for valuation of\nsecurities and other financial assets. A registered valuer should have a\nminimum of three to five years of valuation experience and a valid certificate\nof practice to practice as a registered valuer.<\/p>\n\n\n\n<p>The Insolvency &amp; Bankruptcy Board of India (IBBI) and the Registered\nValuer Organisation monitor the qualification of a registered valuer.<\/p>\n\n\n\n<p><strong><em>The Companies Act, 2013 makes it mandatory to have a\nregistered valuer\u2019s report on the valuation of equity shares in the following\ninstances:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Issuance\nof new shares, except a rights issue, as per Section 62 of the Companies Act,\n2013<\/li><li>Buyback\nof shares by all or some of the shareholders under Section 68 of the Companies\nAct, 2013<\/li><li>Liquidation\nof a company under the Insolvency &amp; Bankruptcy Code, 2016.<\/li><li>Issue\nof sweat equity and allotment of shares for any other consideration than cash<\/li><li>Merger,\namalgamation or restructuring under Sections 230-232 of the Companies Act, 2013\nwhere the valuation of shares or assets is required.<\/li><li>Acquisition\nof shares of minority shareholders by majority shareholders (shareholders\nholding more than 90% shares of the company) under Section 236 of the Companies\nAct, 2013.<\/li><\/ul>\n\n\n\n<p>Moreover, in cases of the right issue under Section 62 or capital\nreduction of a company under Section 66 of the Companies Act, a valuation\nreport by a registered valuer is advisable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Brief on Companies (Registered Valuers and\nValuation) Amendment Rules, 2022<\/h2>\n\n\n\n<p>The Central Government of India, in exercise of\nthe powers conferred under Section 247 (Valuation by registered valuers) read\nwith Section 458 (Delegation by Central Government of its Powers &amp;\nFunctions), Section 459 (Power of Central Government or Tribunal to Accord\nApproval) and Section 469 (Power of Central Government to Make Rules) of the\nCompanies Act, 2013, notified the Companies (Registered Valuers\nand Valuation) Amendment Rules, 2022 on November 21, 2022, to amend the extant\nCompanies (Registered Valuers and Valuation) Rules, 2017.<\/p>\n\n\n\n<p>The\nCompanies (Registered Valuers\nand Valuation) Amendment Rules, 2022 (2022 rules) have brought a few amendments\nto the extant 2017 Rules. The amendments are largely brought about to provide clarity\nand regulate partnership entities or companies already registered or looking to\nget registered as registered valuers.<\/p>\n\n\n\n<ul><li><strong>Eligibility\nof a partnership firm or company to be registered as a registered valuer<\/strong><\/li><\/ul>\n\n\n\n<p>The 2022 rules have rectified clause (c) of Rule\n3(2) of the 2017 Rules by clarifying that a partnership firm shall not be\nregistered as a registered valuer unless all the partners or directors are\neligible to be under Rule 3(1) to be registered as registered valuers. The\npartners and directors must meet all the requirements necessary to be eligible to\nbe a registered valuer, including being a member of a registered valuers organisation.\nClause (f) to Rule 3 (2) has been inserted in this regard. <\/p>\n\n\n\n<p>A proviso has been added that states that such\npartner or director shall not be a member of more than one registered valuers\norganisation at one point in time.<\/p>\n\n\n\n<p>A second proviso has been inserted, which\nprovides six months, from the date of commencement of the 2022 Rules, for a\npartnership entity or company already registered as valuers to comply with the\nprovision of the 2022 Rules.<\/p>\n\n\n\n<ul><li><strong>Intimation\nof Changes in Personal Details by Registered Valuer to Authority<\/strong><\/li><\/ul>\n\n\n\n<p>Rule 7A has been inserted, which mandates that a\nregistered valuer must inform the requisite authority as to any change in the\npersonal details or modification in the composition of directors or partners or\nany such change in the partnership deed or Memorandum of Association which may\naffect the registration of registered valuer. Such intimation must be made by\npaying the fee as per Table 1 in Annexure-V, inserted by the 2022 Rules.<\/p>\n\n\n\n<ul><li><strong>Intimation\nof Change in Composition of Governing Board by Registered Valuers Organizations\nto Authority<\/strong><\/li><\/ul>\n\n\n\n<p>Rule 14A has been inserted, which mandates that\nthe registered valuers organisation must intimate the authority as to any\nchange in the composition of its governing board, appellate panel or committee\nafter payment of fee as per Table-2 of Annexure V as inserted by the 2022 Rules.\n<\/p>\n\n\n\n<ul><li><strong>Insertion\nof Annexure V<\/strong><\/li><\/ul>\n\n\n\n<p>Annexure V has been inserted to provide for fee\nstructure to be followed while making intimations as to changes in personal\ndetails and changes in the composition of governing board of registered valuers\norganisations by the registered valuer or registered valuers organisation, as\nthe case may be, to the requisite authority as per Rule 7A and Rule 14A. <\/p>\n\n\n\n<ul><li><strong>Temporary\nSurrender of Membership<\/strong><\/li><\/ul>\n\n\n\n<p>An explanation has been inserted into Clause\n26(1)(b) of Annexure III, Part II of Serial Number IX, which deals with the\ntemporary surrender of membership from a registered valuers organisation when a\nsuch member takes up employment. The explanation is inserted to clarify that a member\nfunctioning as a whole-time director of a company registered as a valuer shall\nnot be considered &#8220;employment&#8221; and hence not a ground for the\ntemporary suspension.<\/p>\n\n\n\n<ul><li><strong>Insertion\nof Note-2 in Annexure IV<\/strong><\/li><\/ul>\n\n\n\n<p>A new note has been inserted under Annexure IV\nof the 2017 Rules, which deals with the eligibility qualification and\nexperience for registration as a valuer. Note-2 states that in the asset\nclasses of \u201cplant and machinery\u201d and \u201cland and building\u201d, the corresponding\nnomenclature for engineering and technology graduate and post-graduate courses\nas provided for in the notification issued by the All-India Council for\nTechnical Education, dated 28 April 2017, shall also be considered while\ndetermining the eligibility qualification to be registered as a valuer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>The Central Government notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2022 on November 21, 2022, to amend the extant Companies (Registered Valuers and Valuation) Rules, 2017. The amendment provides further clarity to the functions of registered valuers and registered valuers organisations, especially in connection with partners and <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/partnership-firm-registration\">partnership<\/a><\/strong> entities, directors and companies already registered or looking to be registered as registered valuers.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/merger-or-amalgamation-of-company-with-foreign-company\/\">Merger or Amalgamation of Company with Foreign Company: Complete Overview<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2022, on November 21, 2022, in order to amend the extant Companies (Registered Valuers and Valuation) Rules, 2017[1]. The notion of a &#8220;registered valuer\u201d was established with the insertion of Section 247 under the Companies Act, 2013, along with the Companies [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":51029,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2913],"acf":{"service_id":"1"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":3489,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51028"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51028"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51028\/revisions"}],"predecessor-version":[{"id":51031,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51028\/revisions\/51031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51029"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}