Govt to protect minority investors’ interest
December 13, 2007 by talk2santosh
NEW DELHI: The government is set to make it mandatory for companies to get all share allotments for non-cash considerations valued by an expert registered with the government. In a bid to bring transparency in share allotments for non-cash contributions like technology, intellectual property and other assets, the new company law proposed by the government seeks to introduce a new framework for valuation of corporate assets.
The updated version of the Companies Bill, which the ministry of corporate affairs intends to introduce in Parliament during the Budget session, proposes independent fair valuation for different purposes, including mergers & acquisitions and restructuring. The valuer will be appointed by the audit committee of the company concerned.
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