A partnership firm has been set up for objects for rendering professional or financial services etc. It wants to appoint itself as a registered valuer under rule 3 of The Companies (Registered Valuers and Valuation, Rule
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2024
A partnership firm has been set up for objects for rendering professional or financial services etc. It wants to appoint itself as a registered valuer under rule 3 of The Companies (Registered Valuers and Valuation, Rules, 2017. Comment and advice whether the firm is eligible for appointment as a registered valuer.
Answer & Explanation:
Rule 3(2) of the Companies (Registered Valuers and Valuation) Rules, 2017 provides that no partnership entity or company shall be eligible to be a registered valuer if- it has been set up for objects other than for rendering professional or financial services, including valuation services and that in the case of a company, it is a subsidiary, joint venture or associate of another company or body corporate; it is undergoing an insolvency resolution or is an undischarged bankrupt. all the partners or directors, as the case may be, are not ineligible under clauses (c), (d), (e), (f), (g), (h), (i), (j) and (k) of sub-rule (1); three or all the partners or directors, whichever is lower, of the partnership entity or company, as the case may be, are not registered valuers; or none of its partners or directors, as the case may be, is a registered valuer for the asset class, for the valuation of which it seeks to be a registered valuer. Therefore, from the above, it may be concluded that the firm is eligible to appoint itself as registered valuer, provided it meets all other conditions, especially that its objects include rendering professional or financial services (which is stated in the question), and its partners/directors are not ineligible and at least three or all (whichever is lower) are registered valuers for the relevant asset class.
Topics: Registered Valuers
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