ISLAMABAD: The registered valuers of the Securities and Exchange Commission of Pakistan (SECP) would be empowered to conduct valuation relating to any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities.
Under the draft Companies Regulations 2022 issued by the SECP, where valuation is required in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities under the provisions of this Act, the following persons shall be eligible to conduct the requisite valuation: (i) Consulting Engineers registered with Pakistan Engineering Council; (ii) Practicing chartered accountants having satisfactory Quality Control Review awarded by the Institute of Chartered Accountants of Pakistan; and (iii) Any other person as notified by the Commission.
The valuers eligible shall also be deemed to be registered with the Commission and shall be entitled to conduct valuation as required under the Act, subject to fulfillment of the requirements of regulations, the SECP said.
All such valuers shall continue to be regulated, administered and monitored by the entities in which they are originally registered, and shall comply with all relevant rules, regulations, instructions etc. of such entities in addition to requirements of the Act, the Companies Regulations 2022 said.
About the qualification and experience for valuation, the draft Companies Regulations, 2022, said that following valuers who are independent shall be eligible to conduct valuation (i) in respect of movable property i.e. plant and machinery, immovable property i.e. land, building etc., and natural resources and exploration thereof, by a valuer registered with the Pakistan Engineering Council (PEC) as a consulting engineer; (ii) in respect of stocks, shares, debentures, securities, net worth of a company or an undertaking, goodwill and other intangible assets, services, and liabilities, by a valuer who is a practicing chartered accountant having satisfactory Quality Control Review awarded by the Institute of Chartered Accountants of Pakistan and; (iii) in respect of value of all other assets by a valuer registered with the PEC as a consulting engineer, having experience as a valuer of at least five years in the relevant field.
To maintain independence and impartiality and to ensure true and fair valuation, the valuer shall not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time before submission of the report, the SECP regulations said.
The valuation shall not be older than six months, or such other time period as may be notified by the Commission, from the date of allotment in case of a private company and from the date of submission of application to the Commission in case of a public company seeking approval of the Commission, the Companies Regulations, 2022, stated.
The relevant entity or agency, on its own motion or on reference by the Commission, may initiate necessary action against the eligible valuers for any misconduct or failure to perform professional duties in accordance with its rules and regulations, and may cancel the registration of such a valuer.
Copyright Business Recorder, 2022
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