Management Quality Analysis
But the objectivity of management can be affected by many factors viz conflict of interest, bias nature, undue pressure to achieve a financial target which is practical not possible. The price of a stock does not determine the effectiveness of management. As per efficient market theory the prices of stock reflects all the relevant information, but its now highly discredited.
Now the main question which remains unanswered is that where to get detailed information about each & every – Director and Key Managerial Person (M.D, CEO, Directors, Company Secretary)
As per Companies Act, 2013 and the Rules made there under :–
The company is required to maintain a Register containing detailed information about the management including the securities held in the company or its subsidiary or associate.
As per the Rules – the register shall also content following details :-
- Director Identification Number – DIN, Name, Former name, Surname, Date of birth, Nationality etc.
- Date of appointment / re-appointment.
- Date of cessation of office – with reasons.
- The number, description of nominal value of securities.
- Date of acquisition & the price at which it was acquired.
- Date of disposal & the price of disposal.
- Cumulative balance of securities held after each transaction.
- Mode of acquisition – physical or dematerialized form.
- Whether securities have been pledged.
The Companies Act, 2013 also gives Right to Member i.e Shareholders – To INSPECT this register maintained by the company. Further it also gives the right to take extracts from register or make copies from it.
If a shareholder request the company for copies from register or extract from it – than the company has to fulfill the request within 30 days, at free of cost.If company refuses to allow inspection of register or supply copies – than the shareholder can make an application to Registrar of that company and Registrar shall pass an order immediately.
If the company contravenes with the above law than :-
The company along with each & every director, officer – who is at default – shall be punishable with a fine of Rs. 50000/- (minimum) up to Rs. 5 lacs.
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