Few indicators to evaluate the Management of the Company. 🏦
• Promoter’s Background
• Promoter’s Salary
• Capital Allocation
• Related Party Transactions
Let's discuss them in detail. ⤵
• Promoter’s Background
• Promoter’s Salary
• Capital Allocation
• Related Party Transactions
Let's discuss them in detail. ⤵
1️⃣Promoter’s Background
The factors that define the quality of management include the experience and skills of the promoter or the Board of directors.
#StockMarketindia
The factors that define the quality of management include the experience and skills of the promoter or the Board of directors.
#StockMarketindia
2️⃣Promoter’s Salary
As per section 197 of the Companies Act, the total managerial remuneration paid by a public company to its directors should not exceed 11% of the company's total profit.
As per section 197 of the Companies Act, the total managerial remuneration paid by a public company to its directors should not exceed 11% of the company's total profit.
3️⃣Capital Allocation
Capital allocation is when the management team invests the excess free cash flow (FCF) that the business generates.
Capital allocation is when the management team invests the excess free cash flow (FCF) that the business generates.
4️⃣Related Party Transactions
One needs to evaluate the nature of related party transactions within the broader corporate context and see whether these transactions are justified or not.
One needs to evaluate the nature of related party transactions within the broader corporate context and see whether these transactions are justified or not.
Find why is it important to evaluate the management of the company on
blog.finology.in/investing/eval…
blog.finology.in/investing/eval…
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