Corporate governance and compliance and year-end planning go hand-in-hand.  Corporate governance is a continuous process in the life of any San Diego corporation.  But what exactly is corporate governance and compliance, and why is it important to end the year with a clean corporate house and a plan for next year?

What is Corporate Governance?

Corporate governance is basically defined as the planning and execution of the responsibilities associated with rules established in the corporate documents about how a corporation is to be run and managed, and the purpose behind the company’s existence.  Corporate governance also extends to ensuring the corporation is in compliance with all laws, regulatory compliance and even tax obligations.

Corporate governance touches every aspect of the company and all who work for it, from the board room through executives and managers and ultimately throughout the work force.  It primarily is focused upon the controlling members or shareholders in smaller organizations, and in a larger corporation, the board of directors and executives and how they run and manage the company.

Corporate governance should address many aspects of corporate life including but not limited to:

• Financial reports
• Update of corporate documents such as the shareholders’ agreement or operating agreement
• Maintenance of minutes and required periodic or annual meetings
• Communication with employees and the shareholders of the corporation
• Board appointments and responsibilities
• The relationship between the company’s management and the board itself
• Risk management and ensuring the proper conduct of the company and its employees
• The performance of the company itself
• Completion and submission of all required reports and forms for external government agencies and tax authorities

Corporate governance and compliance is a continuous process working for improvement and based upon trust, accountability and ultimately transparency.  Corporate governance and compliance should ensure regular updates of corporate documents and supporting agreements.  Security measures should be developed, implemented and monitored to protect the company and its assets and to ensure the legal, moral and ethical conduct of its employees and officers.

The Focus of Good Corporate Governance

Many corporations are focused upon “social responsibility” as well as the culture of the company and the dynamic vision which enlightens and drives the activity of all associates.  The “vision” and “values” of your company should be clearly established and communicated throughout the organization to ensure consistent conduct and protection of the image of the company in the eyes of not only it’s customers, but suppliers and the general marketplace as well.

Compliance with all federal, state and local laws and regulations falls under this discussion as well.

A Plan Going Forward

What is the business plan going forward?  What is working?  Let’s add fuel to that fire in terms of financial support and additional resources.  What are some of our greatest challenges?  How can we adjust what we are doing, gain new perspective, bring in additional skill-level employees or partners and get things heading in the right direction?

What are some potential new market opportunities?  Is there a new vertical or geographic market we should consider for expansion?  Is there an important capacity or gap in our organization which would benefit from the acquisition of another company’s assets or the company itself?  Could a joint venture open the door to new opportunities and additional revenues and profits?

A business without strong corporate governance and compliance and year end planning is destined to stagnate and ultimately fail. Not all plans succeed, but many do!  When something isn’t successful you apply what you’ve learned and take a new tact.  When plans succeed they should be replaced with new plans to support and lock in the successes we’ve gained while reaching for the next set of opportunities.

Working To Help You To Fulfill Corporate Governance and Year End Planning

The Watkins Firm has served San Diego and Southern California businesses, corporations and the healthcare industry for more than four decades.  We are business owners ourselves.  We have helped the smallest of companies to get up and going.  We have served as legal counsel in substantial mergers and acquisitions here in California and for clients across the country.

Draw on that experience.  We can help to manage the small details of corporate governance and compliance, provide insight into your challenges and plans and help to support your business as it finishes this year and looks toward the next.

Corporate governance and compliance and year end planning is a continuous process of refinement, improvement, clarification and transparency.  We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.