The valuation of shares attached by lenders, such as banks, financing companies, or other entities, is one of the asset valuation services a CMA-licensed asset valuator renders in the cases specified under law.
The attached shares valuation 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 their attached shares 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 the attached shares 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 attached shares valuation?
Article (34) of the Executive Regulations of the aforementioned Companies Law stipulates that companies shall appoint a licensed asset valuator to carry out attached shares valuation if an attachment is applied for a partner’s debit.
What is the liability of the asset 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 attached shares’ valuation services?
- Ensure fair valuation of the attached shares of the partner as the asset valuator is independent.
- Ensure the compliance of business entities with the provisions of law regarding asset and share valuation.
- Enhance the principles of independence and integrity and prevent conflict of interest while rendering valuation services.
What are the services that Baker Tilly Kuwait provides?
Baker Tilly is a CMA-licensed asset valuator to issue to issue asset valuator’s report on the attached shares valuation.