Protecting the rights of small shareholders in the shadow of mandatory revaluation of companies’ assets – Tejaratnews

According to Tejarat News, last week “Petair” announced the mandatory revaluation of its assets in a clarification notice. In a part of Petyar’s clarification, it was emphasized that if the value of the reassessed assets has a significant and important difference compared to their current value, there is no need to finish the three or five-year period for the reevaluation, and the next revaluation will be necessary and mandatory. Was.

The importance of mandatory revaluation of assets

This point will be an important step towards transparency, especially considering the inflationary conditions of Iran’s economy. Meanwhile, many companies refuse to do so on the pretext that the five-year deadline for their new revaluation has not yet expired. This is despite the fact that the inflation trend has always been upward during the last 5 years, and this means an increase in the value of the company’s assets.

Among the companies that refuse to carry out revaluation of their assets on the pretext of not ending the five-year deadline are two large automobile companies, Iran Khodro and Saipa, which have caused a negative atmosphere in the stock market these days.

Capital market experts emphasize the need to support the mandatory revaluation of assets and see this as a step towards clarifying the situation of companies and helping shareholders to determine the strategy of staying in the share or exiting it.

Currently, one of the main problems of the company’s shareholders is the failure to update the value of the company’s assets according to the current price and the inflation trend. Accordingly, sometimes due to the fact that the old value and price of the company’s assets have been calculated in the company’s financial statements, the value of the company in terms of assets is calculated little and causes the shareholder to leave.

At the same time, revaluation of assets late while the company may have increased its assets in a five-year period, violates the rights of small shareholders and is against the principle of transparency in the capital market.

Protecting the financial interests of companies

It should be noted that Mohsen Alizadeh, a member of the Supervisory Board of the Supreme Council of the Stock Exchange, also believes: “Requiring companies to re-evaluate their depreciable and non-depreciable assets, along with creating a suitable solution for calculating the replacement value of various industries, can be a great help in the growth of the capital market, prevent from sudden fluctuations and protecting the rights of shareholders.”

He said: “Capital is the main input of production and the most important factor of its growth. For many years, we have seen the massive outflow of capital from companies due to the distribution of high profits in the assemblies. “Imaginary profits that have been distributed due to lack of revaluation of assets and calculation of real depreciation.”

Alizadeh has emphasized: “One of the most important advantages of the mandatory revaluation of assets is the preservation of financial resources in companies and, as a result, the growth of production.”

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