is being valued, and any of the parties interested in the outcome of the valuation.
Conflict of interest can arise if the Valuers are not
“cook the books”, vice versa.
been cases colludes with
where valuers the client, and
A valuer can act in one of three capacities for a client, as follows:
an internal valuer,
an external valuer,
an independent valuer.
An Internal Valuer is one who is either the director of the company, an employee, and who has no significant financial interest therein. In other words, an employee or director can carry out a valuation, provided that he has no personal financial interest in the outcome. A classical example is the Valuation Department in the Ministry of Finance, the Inland Revenue Section.
An External Valuer is person or persons assigned to carry out a valuation on behalf of a client, where that person(s) or his partners or his co-directors are not directors or employees of the client, who may have significant financial interest therein. And also where that client does not have a significant interest in the Valuers’ Company.