Mr. X, director of BRT Ltd. entered into an arrangement with his friend and acquired asset on name of the BRT Ltd. Prior approval for such arrangement was required by a resolution of the company in general meeting. The notice for approval of resolution by company included particulars of arrangement along with the value of the assets duly calculated by registered VALUER. Later Board of company discovered the loss arising out of incorrect statement in the report made by the VALUER. State the liability of the VALUER in the given situation: –
Valuer can claim immunity stating that company is not bound to accept his opinion being an expert.
The valuer shall be punishable with fine only for the incorrect statement given in the report
Valuer is liable to be convicted for the incorrect statement given in the report made with intent to defraud the company or its members.
Valuer cannot be held liable for damages to company as company have seek prior approval in GM