New Delhi, April 24 (IANS) The Insolvency & Bankruptcy Board of India (IBBI) has said that a member of the promoter organisation of a registered valuer organisation (RVO) cannot be appointed as an independent director of the valuer.
“In the meetings with MDs/CEOs of the RVOs, the issue of eligibility to be an independent director has been discussed a few times, in view of the likely conflict of interests. It has been clarified that a member of the promoter organisation, which has promoted an RVO, shall not be an independent director in the RVO,” the board said in circular.
IBBI also said that shareholder of the promoter company can be director on the Governing Board of the RVO but cannot be appointed as an independent director.
“A promoter organisation may have its members – shareholder member in case the promoter is a company, a trustee in case the promoter is an association of persons/ trust, or a professional member in case the promoter is a professional body – as directors on the Governing Board of the RVO. However, such directors shall not be appointed as independent directors,” it said.
Further, a share-holder or professional member of the Institution of Valuers (IOV), who is a director on the Governing Board of the IOV RVO or a professional member of the ICAI, who is a director on the Governing Board of the ICAI RVO, shall not be considered as an independent director.
IBBI said that Companies (Registered Valuers and Valuation) Rules, 2017 envisage Registered Valuer Organisations to act as front-line regulators for development and regulation of the valuation profession.
The RVOs have the responsibility to admit, develop, monitor and discipline the members of the profession.