In Indian listed company context, “common management” simply means that two or more companies share the same key people in control or running the business – typically:

- Same Promoter(s) or Promoter Group

- Same (or largely overlapping) Board of Directors

- Same Key Managerial Personnel (KMP) – MD/CEO, Whole-time Directors, CFO, Company Secretary, etc.

When such overlap exists, the companies are said to have common management, and this is relevant for:

1. Related Party classification

- Under Companies Act, 2013 and SEBI (LODR) Regulations, entities with common directors / common KMP / common promoters can often be treated as related parties.

- Transactions between such entities become Related Party Transactions (RPTs) and attract special disclosure, approval, and audit requirements.

2. Conflict of interest & governance risk

- Common management can create potential conflict of interest (e.g., shifting business, profits, or assets between group entities).

- Investors and analysts track this closely to judge corporate governance quality.

3. Disclosure in offer documents and annual reports

- Prospectuses, annual reports, and corporate governance sections explicitly disclose group structure, related parties, and companies under common control/management.

- You will often see language like “company X and company Y are under common management” or “entities under common control of the promoters”.

Regarding “RIBA and other listed companies”

- The phrase as written is unclear: “RIBA” could refer to a specific listed company (for example, a company whose name or ticker includes “Riba”) or to something else.

- The concept of common management, however, is the same for any listed company: if RIBA and another listed company share the same promoters/directors/KMP, they would be considered to have common management and likely be related parties.

How to practically check common management for any two listed companies (including RIBA, if that’s the one you mean):

1. Compare directors and KMP

- Look at the latest annual report / corporate governance report of each company.

- Check:

- Board of Directors list

- KMP list (MD/CEO, CFO, CS, etc.)

- If many names overlap, there is common management.

2. Check promoter and promoter group

- See shareholding pattern disclosures (BSE/NSE website or company filings).

- If the same promoters or promoter group names appear in both companies, they are under common control.

3. Review “Related Party” notes

- In the Notes to Accounts and Related Party Disclosures, companies usually list:

- “Enterprises under common control”

- “Entities under common management”

- That section directly shows how management and control are shared across group entities.

Illustrative example (hypothetical, for understanding only):

- Suppose “RIBA Ltd” and “ABC Textiles Ltd” share:

- The same promoter family (say, XYZ family)

- 3 out of 5 directors are the same (Mr. A, Ms. B, Mr. C)

- Same CFO across both entities

Then:

- RIBA Ltd and ABC Textiles Ltd are under common management and common control.

- They will usually be classified as related parties, and their inter-company sales, loans, guarantees, etc., will be disclosed as RPTs.

If you share the exact full name or ticker of “RIBA”, I can explain the current management structure of that specific company and how to check for common management with other listed entities.

If you have any further queries, please connect with us on 022-6290-10141 (Timings : 09.00 AM to 05.00 PM) or you can email us on info@cniinfoxchange.com