Madhav Ltd. makes preferential offer of securities for consideration other than cash. How is such consideration valued ?
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2016
Madhav Ltd. makes preferential offer of securities for consideration other than cash. How is such consideration valued ?
Answer & Explanation:
According to the Section 42 and Section 62 read with rule 13(2)(i) of the Companies (Share Capital and Debentures) Rules, 2014, where shares or other securities are to be allotted for consideration other than cash, the valuation of such consideration shall be done by a registered valuer who shall submit a valuation report to the company giving justification for the valuation.
Topics: Companies Act, 2013
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