Important Points to be considered while valuating shares of private limited companies:-
FMP (future maintainable profit) arrived is divided by Number of shares to get Earning per Share (EPS).
Then EPS is multiplied with P/E Ratio (market price to earnings ratio). In absence of Market price of share to get P/E ratio Use method 100/NRR (Normal rate of return).
On multiplication of EPS with P/E ratio we get value of market value per share.
NOTE: - To avoid Conflict between high and low market price at different method it’s advisable to take average of above two methods, which is as follows:
= Market Price with NPV + Market Price with Earning Capacity
Directors are agents of the Company in transactions they enter into on behalf of the Company, though they are not agents for individual shareholders or members. A director may be an employee, a servant or even a "worker" of the Company. He occupies the position of a trustee, though he is not a trustee in the strict sense in respect of the Company’s properties and funds.
Director’s liability arises because of their position as agents or officers of the Company has also for being in the position of trustees or having fiduciary relation or mis-appropriation of funds of the company or its shareholders.
Some of these liabilities are in contract, some are in tort, some are under the criminal law and others are statutory, i.e., under the Companies Act and other laws. The courts have, in deciding the liability of Directors, taken into consideration a director’s position as a whole.