what is stock management
what is stock management is the implementation of a legal entity or an individual entrepreneur, management delegated to the temporary holding of securities. For transfer of securities in the office issued the trust management agreement, according to which the Trustor shall deliver to the Trustee for a certain period of securities or funds intended for the purchase of securities. The Trustee carries out management in the interests of the founder of management or the person (beneficiary).
In the contract of trust management should be defined:
- composition of the management of the property;
- the name of the person, in the interests of which management is carried out;
- the amount and form of remuneration of the Manager;
- the period of validity of the contract, which may not exceed 5 years.
what is stock management: 1 Manager should ensure separate accounting of securities and monetary funds, received from the founder management of their own. For this he differs transferred to it by the securities and cash and leads off-balance sheet accounts of clients.
Carrying out trust management the Trustee shall be entitled to receive in respect of the securities and monetary funds, in accordance with the terms of the contract, any actions in the interests of the beneficiary.
Received the assets in management, the Trustee makes transactions on purchase and sale of securities on its own behalf. However, in the contracts he shall be obliged to indicate that acts as a Manager. Therefore, provided that the documents (contracts, acts, etc.) after the name (s) of the Manager must be a mark of «D. .». If the mark is not, then the Trustee shall undertake to third parties personally, and answers to them the property belonging to it.
In the contract it is necessary to provide, who will have the rights arising from the ownership of securities: the right to vote at a meeting of shareholders, the right to convene an extraordinary General meeting and etc. Usually the founder transfers all the rights on securities Manager. However, it is necessary to provide in the contract.
The Trustee may entrust another person to perform management operations on behalf of the Trustee. Перепоручение is possible in the following cases:
- if it is stipulated by the terms of the contract;
- if the managing received a written order of the founder on these actions;
- if the need to delegate the authorisation is caused by extraordinary circumstances and is aimed at ensuring the interests of the beneficiary, however, obtain the written consent of the founders of the performance of these actions in a short time is not possible.
The Trustee shall bear responsibility before the settlor and the beneficiary. In case of loss, he shall reimburse the founder of management losses, and the beneficiary - the loss of profit.
