Determination of Share Price

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This discussion explores whether a formal valuation is necessary when a private limited company's shares are transferred between individual shareholders. The consensus suggests that such transfers typically do not require a valuation to determine the share price. It also touches upon whether only registered valuers or independent CA practitioners can conduct such valuations if needed.

Sashikant Chaudhury

Sashikant Chaudhury (Querist)
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04 May 2024 If an individual shareholder of a company transfers its holdings to another individual, will it require a valuation to determine the price of shares? If so, can only a registered valuer perform this valuation, or can an independent CA practitioner with over 10 years of practice also do so? Assume company is private limited company.

CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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06 May 2024 In My Humble Opinion Transfer of Shares from One Resident Individual to Another Resident Individual do not require Valuation to determine price of the share.

Sashikant Chaudhury

Sashikant Chaudhury (Querist)
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06 May 2024 Thank you so much Sir

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