HOW A COMPANY TURNS PENNY STOCK
-Corporate governance means best business practices
How to define
Recently we have heard About Shilpi cable
Company didnt disclose why insolvency petition filed?
Why they removed key management?
Why they want bonus issue when already so much problems?
How company sales increases drastically as well as debtor also.
And many more issues.
This is called bad governance.
One of The main Factor is also technology upgradation
-Increasing Debt and misallocation of that debt Conversion of Debt into Equity
Example-Guj Nre Koke
-Misjudging of Competitor Strategy
Suppose Two companies operating in Same ind and one is using Latest Technology and other Obsolete technology
then Second One loose thier business compared to First.
-Resignation Of KMP
Intellectual Property Is also an important part of Company.
Certain change in Directorship can destroy any company.
-Lack of Code of Conduct
-Insider Trading(Syncom Formula)