Cancellation of Certificate of Registered Valuers – One Person Company Registration in Coimbatore

Cancellation or suspension of certificate of registration or recognition

The authority may cancellation or suspend the registration of a valuer of the company or recognition of a registered valuers organization for violation of the provisions of the Act, any other law allowing him to perform valuation, these rules or any condition of registration or recognition or cancellation, as the case may be in the manner specified in rule 17.

Complaint against a registered valuer or registered valuers organization

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A complaint may be filed against a registered valuer or registered valuers organization of the company before the authority in person or by post or courier along with a non-refundable fees of rupees one thousand in favor of the authority and the authority shall examine the complaint and take such necessary action as it deems fit:

Provided that in case of a complaint against a registered valuer, who is a partner of a partnership entity or director of a company, the authority may refer the complaint to the relevant registered valuers organization and such organization of one person company registration in coimbatore shall handle the complaint in accordance with its bye laws.

Procedure to be followed for cancellation or suspension of registration or recognition certificate

Based on the findings of an inspection or investigation, or a complaint received or on material otherwise available on record, if the authorized officer is of the prima facie opinion that sufficient cause exists to cancel or suspend the registration of a valuer or cancel or suspend the recognition of a registered valuers organization of the company, it shall issue a show-cause notice to the valuer or registered valuers organization.:

Provided that in case of an organization referred to in clause (ii) of sub-rule (1) of rule 12 which has been granted recognition, the authorized officer shall, instead of carrying out inspection or investigation, seek the information required from the registered valuers organization of the company within the time specified therein and in the case of a default, give one more opportunity to provide the information within specified time failing which or in the absence of sufficient or satisfactory information provided, either initiate the process under this rule or refer the matter to the Central Government for appropriate directions. The show-cause notice shall be in writing and shall state-

a) The provisions of the Act and rules under which it has been issued:

b) The details of the alleged facts;

c) The details of the evidence in support of the alleged facts;

d) The provisions of the Act or rules or certificate of registration or recognition allegedly violated, or the manner in which the public interest has allegedly been affected;

e) The actions or directions that the authority proposes to take or issue if the allegations are established;

f) The manner in which the person is required to respond to the show-cause notice.

g) Consequences of failure to respond to the show-cause notice within the given time; and

h) Procedure to be followed for disposal of the show-cause notice.

The show-cause notice shall be served in the following manner by-

a) sending it to the valuer or registered valuers organization of the company at its registered address by registered post with acknowledgment due; or

b) An appropriate electronic means to the email address provided by the valuer or registered valuers organization to the authority.

The authorized officer of the company shall dispose of the show-cause notice by reasoned order in adherence to the principles of natural justice. The order in disposal of a show-cause notice may provide for-

a) No action:

b) Warning, or

c) Suspension or cancellation of the registration or recognition; or

d) Change in any one or more partner or director or the governing board of the registered valuers organization.

An order passed under sub-rule (5) cancelling the recognition of a registered valuers organization, shall specify the time within which its members may take membership of another registered valuers organization of the company recognized for valuation of relevant asset class without prejudice to their registration. The order passed under sub-rule (5) shall be issued to the concerned person immediately, and published on the website of the authority. The order passed under sub-rule (5) shall not become effective until thirty days have elapsed from the date of issue of the order unless stated otherwise. Any person aggrieved by an order of the authorized officer under sub-rule (5) may prefer an appeal before the authority.

Explanation.-For the purposes of this rule, the authorized officer shall be an officer as may be specified by the authority.

Valuation Standards

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The Central Government shall notify and may modify (from time to time) the valuation standards on the recommendations of the Committee set up under rule 19.19. Committee to advise on valuation matters.-

The Central Government may constitute a Committee to be known as “Committee to advice on valuation matters” to make recommendations on formulation and laying down of valuation standards and policies for compliance by companies and registered valuers. The Committee shall comprise of-

a) A Chairperson who shall be a person of eminence and well versed in valuation accountancy, finance, business administration, business law, corporate law, economics;

b) One member nominated by the Ministry of Corporate Affairs;

c) One member nominated by the Insolvency and Bankruptcy Board of India:

d) One member nominated by the Legislative Department;

e) Up to four members nominated by Central Government representing recognition authorities which are allowing valuations by registered valuers;

f) Up to four members who are representatives of registered valuers organizations, nominated by Central Government;

g) Up to two members to represent industry and other stakeholder nominated by the Central Government in consultation with the authority;

The Chairperson and Members of the Committee of one person company registration in Coimbatore shall have a tenure of three years and they shall not have more than two tenures.

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