It is the time of year for corporate governance and compliance discussions and action plans. Corporate governance and compliance in San Diego is important for any corporation.
What is Corporate Governance?
Governance, generally speaking, relates to the management of the direction of the corporation as well as its profitability and performance. The responsibility to ensure all measures are taken to ensure corporate governance requirements are fulfilled, and to confirm continuing compliance with all federal, state and local laws, ordinances and regulations falls upon principal ownership and officers of the corporation. This includes (but is not limited to):
- Board of Directors
- Individual Board Members
- Officers of the Corporation
- Committees of the Board of Directors (audit, compliance)
- Compliance Officers
- Corporate General Counsel
Governance is not limited to fulfilling the reporting requirements of the New York Stock Exchange, American Stock Exchange, NASDAQ or the various California state agencies, although these reports are one component of governance. Fulfilling the federal requirements of Sarbanes-Oxley and compliance with all safety regulations and training requirements of OSHA, or the Occupational Safety and Health Administration is an important component of governance and compliance as well.
What is Corporate Compliance?
While it is the time of year for corporate governance and compliance session planning and implementation one may simply ask “what is corporate compliance and what should our planning entail?”
Compliance ensures that no officers, directors, employees, agents or contractors associated with the company violate federal, state or local laws in any manner. Compliance includes policies and procedures, training and monitoring of all corporate employees to ensure standards of ethics and lawful business practices are maintained throughout the organization. The establishment of a corporate culture, and the policies and procedures, employee handbook and guidelines that ensure professional conduct and respect both within and outside of the organization must be constantly updated and reinforced.
Compliance begins with leadership from the top – establishing the tone that will guide the corporation in all activities. Compliance officers evaluate procedures and processes, risks, areas of prior violations and existing corporate training and monitoring and oversight programs to ensure that all internal controls are in place and up-to-date.
It is the time of year for corporate governance and compliance discussions and action plans at your San Diego or Southern California corporation. The corporate counsel at the Watkins Firm provide sound advice and counsel based upon more than four decades of experience helping corporations of all sizes and structures to fulfill the legal obligations of corporate life and management. Maintaining corporate governance and compliance in San Diego is a critical element of corporate management and protects the corporate veil. If you have questions about corporate governance and compliance in San Diego or require the services of experienced corporate counsel we invite you to review our podcast Episode 24 – Corporate Governance as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
