Valuation of unquoted shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 If a shareholder of a private limited company wants to sell his shares to someone else then the valuation has to be done as per the fair market value of that share i.e computing the net worth of the company divided by total no of shares on the date of transfer.
To calculate the net worth of the company would we consider the value of the land as per the book value or market value?

thank u

mehulmukati

mehulmukati (Expert)
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11 March 2014 First, please check what the AoA/MoA states. Some companies have specific clauses wrt transfer and its pricing.

Specifically if you need to calculate land at market value and not book value.