Valuation of corporate net assets is one of the asset valuations services a CMA-licensed asset valuator renders in the cases specified under the law.
Valuation of corporate net assets is governed by the provisions set forth in this regard in Module Five, “Securities Activities and Registered Persons” of the Executive Bylaw of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulation of Securities Activity, as amended, and the Companies Law No. 1 of 2016 and its Executive Regulations, as amended.
What are the statutory and regulatory requirements in the State of Kuwait that mandate companies to have corporate net assets valuated?
Article 1-39 of Module Five, “Securities Activities and Registered Persons” of the Executive Bylaw of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulation Securities Activity, as amended, states that corporate net assets valuation is one of the asset valuator’s activities, in line with the Companies Law No. 1 of 2016 and its Executive Regulations, as amended.
What are the cases that require valuation of corporate net assets?
Articles 250, 256, and other articles of the Companies Law and its Executive Regulations require appointing an asset valuator to conduct valuation of corporate net assets in the following cases:
- Corporate Conversion
- Corporate mergers
- Corporate spin-offs
- Corporate termination
What is the liability of the assets valuator in this regard?
Article 3-5 of Module Eleven, “Dealing in Securities” of the Executive Bylaw of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulation Securities Activities, as amended, states that:
An Asset Valuator shall be liable for any professional negligence or fault relevant to its conclusions to the extent of the information available to it in this regard.
In light of the above, Baker Tilly adopts effective and efficient valuation techniques to ensure the fair valuation of the underlying assets.
What is the added value to business entities from the corporate net asset valuation services?
- Ensure fair valuation of the corporate net assets as the asset valuator is independent.
- Ensure that the conversion, merger, spin-off, and termination of companies are in accordance with the provisions of laws in force in the State of Kuwait.
- Enhance the principles of independence and integrity and prevent conflict of interest while rendering valuation services.
What are the services provided by Baker Tilly Kuwait?
Baker Tilly is a CMA-licensed asset valuator that issues asset valuator reports on the valuation of corporate net assets in cases of conversion, merger, spin-off, or termination.