The Securities and Exchange Commission of Pakistan (SECP) will be empowered to depute a panel of professional valuers to carry out valuation of any asset, including property, stocks, shares, debentures and securities.
It is learnt that the second draft of the new Companies Ordinance has introduced a new section 'valuation by registered valuers'. The valuation of assets/services would be carried out in case of allotment other than cash mandatory. The Commission to maintain a panel of professional valuers licensed by it to ensure proper regulation of the sector. This will ensure an impartial, true and fair valuation of any asset required to be valued by the professional valuers.
According to the proposed law, where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (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 qualification and experience and registered as a valuer in such manner, on such terms and conditions as may be specified.
The valuer appointed shall make an impartial, true and fair valuation of any assets, which may be required to be valued; exercise due diligence while performing the functions as valuer; and 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 valuer shall prepare his report in such manner and applying such approaches, as may be specified. If a valuer contravenes the provisions of this section or the regulations made thereunder, the valuer shall be liable on conviction to a fine of level 2 on the standard scale: Provided that if the valuer has contravened such provisions with the intention to defraud the company, or its members, or creditors, he shall be punishable with imprisonment for a term which may extend to one year and with fine which may extend to Rs 500,000.
Where a valuer has been convicted, he shall be liable to refund the remuneration received by him to the company and pay for damages to the company or to any other person for loss arising out of incorrect or misleading statements of particulars made in his report, the draft law says.