Registered Valuers: Surrender and Expulsion from Membership

SURRENDER OF MEMBERSHIP AND EXPULSION FROM MEMBERSHIP

In exercise of the powers conferred by section 247 read with sections 458 and 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the COMPANIES (REGISTERED VALUERS AND VALUATION) RULES, 2017.

In respect of SURRENDER OF MEMBERSHIP AND EXPULSION FROM MEMBERSHIP the rules are as follows:

Temporary Surrender of Membership.

26. (1) A member shall make an application for temporary surrender of his membership of the Organisation at least thirty days before he-

(a) becomes a person not resident in India;

(b) Takes up employment; or

(c) Starts any business, except as specifically permitted under the Code of Conduct;

and upon acceptance of such temporary surrender and on completion of thirty days from the date of application for temporary surrender, the name of the member shall be temporarily struck from the registers of the Organisation, and the same shall be intimated to the Registration Authority.

Amendment – in clause 26, in sub-clause (1), in item (b), regarding – taking up employment ,  the “Explanation- For the removal of doubts, it is  clarified that a member functioning as a whole time director in the company registered as valuer shall not be treated as taking up employment for the purpose of this provision.”

(2) No application for temporarily surrender of membership of the Organisation shall be accepted if –

(a) There is a grievance or disciplinary proceeding pending against the member before the Organisation or the Registration Authority, and he has not given an undertaking to cooperate in such proceeding; or

(b) The member has been appointed as a Valuation professional for a process under the Companies Act, 2013, and the appointment of another Valuation professional may be detrimental to such process.

(3) A member may make an application to revive his temporarily surrendered membership when the conditions for temporary surrender as provided in sub-clause (1) cease to be applicable, and upon acceptance of the application for revival, the name of the member shall be re-inserted in the register of the Organisation, and the same shall be intimated to the Registration Authority.

Surrender of Membership

27. (1) A member who wishes to surrender his membership of the Organisation may do so by submitting an application for surrender of his membership.

(2) Upon acceptance of such surrender of his membership, and completion of thirty days from the date of such acceptance, the name of the member shall be struck from the registers of the Organisation, and the same shall be intimated to the Registration Authority.

(3) Any fee that is due to the Organisation from a member surrendering his membership shall be cleared prior to his name being struck from the registers of the Organisation.

(4) The Organisation may refuse to accept the surrender of membership by any member if –

(a) There is any grievance or disciplinary proceeding pending against the member before the Organisation or the Registration Authority; or

(b) The member has been appointed as a Valuation professional process under the Companies Act, 2013, and the appointment of another Valuation professional may be detrimental to such process.

Expulsion from Membership.

30. A member shall be expelled by the Organisation–

(a) if he becomes ineligible to be enrolled under bye-law 9;

(b) On expiry of thirty days from the order of the Disciplinary Committee, unless set aside or stayed by the Appellate Panel;

(c) Upon non-payment of membership fee despite at least two notices served in writing;

(d) Upon the cancellation of his certificate of registration by the Registration Authority;

(e) Upon the order of any court of law

Bye-laws 9 are

The registration granted under Rule 7 or 8 shall be subject to the conditions that the valuer shall –

(a) At all times comply with the provisions of the Act and these Rules;

(b) At all times comply with the Valuation Standards;

(c) in his/ its capacity as a registered valuer, not conduct valuation of the assets or class of assets other than for which he/it has been registered by the Registration Authority;

(d) Take prior permission of the Registration Authority for shifting his/ its membership from one valuation professional organisation to another, after receiving no objection from both the concerned valuation professional organisations;

(e) Take adequate steps for redressal of grievances;

(f) Maintain records of all assignments undertaken by him/it under the Act and these Rules for at least three years from the completion of such assignment;

(g) Comply with the Code of Conduct of the valuation professional organisation of which he/it is a member;

(h) Allow only the partner who is a registered valuer for the class of assets that are being valued to sign and act on behalf of it, where it is a partnership entity;

(i) be jointly and severally liable with the partnership entity which is a registered valuer, of which he is a partner, and on whose behalf he signs and acts in respect of a valuation assignment; and

(j) Comply with such other conditions as may be imposed by the Registration Authority.