Advantage of Managing Agency Systems
A managing agent is a person or company appointed by the freeholder of a property, or a management company, to manage that property. When a person, a firm, or a company takes responsibility to handle the company management under an agreement, he is known as the managing agent. The managing agents play a very effective role in settling the affairs of the company. They help the directors and managers to run the company. For some advantages, managing agency systems are familiar with the company:
- Managing Agent helps the promoter to promote the company by maintaining all legal conditions.
- If the company is large in size and has the complicated management systems, the managing agent takes over the management and help hoard of directors.
- A company can reduce the cost by appointing managing agent instead of directors.
- At primary level company feels the risk of loss. That time managing agency undertakes the management of the company and minimizes risk.
- Managing Agent helps the company by financing and they purchase share and debentures. Sometimes they help to advertise to purchase company share to the public.
- Managing Agent helps the company to develop by helping the management.
- The managing agent is also very useful for promoting the finance of the company. The major portion of the capital is raised through the personal efforts of the managing agents.
- Managing Agent is to attract the funds in the form of debentures. They supply the tilted and working capital.
- The managing Agent also performs the function of underwriter and furnishes the necessary capital by using available resources.
Above all advantages, it is ensured that it is good for the company to line a managing agency. To attain the organizational goals managing agent help management effectively and efficiently.