What is corporate governance and compliance in San Diego and why this so important for any corporate entity? Protecting the corporate veil and reducing risk are an important part of doing business for any corporation or small business. The risks faced by San Diego corporations and their officers, Board of Directors and shareholders as well as members in an LLC have substantially increased over the past few years. An effective corporate governance and compliance strategy is a central part of keeping your business viable and profitable. It’s also required by federal and state law.
What is Corporate Governance and Compliance?
What is corporate governance and compliance and what must be done to fulfill your duties as an officer of the corporation? Corporate governance and compliance involves staying abreast of changes in regulatory compliance and laws at the federal level, throughout the State of California and here in San Diego. From federal legislation such as Sarbanes-Oxley and the Dodd-Frank Acts, to the unique advantages provided to minority interests in California (and the subsequent rise in shareholder disputes and actions), understanding the question of what is corporate governance and compliance has never been more important.
Corporate governance and compliance protects the “corporate veil” ensuring the corporate entity remains a separate viable entity from those who own the corporation. It begins with the maintenance of crucial corporate requirements such as annual meetings, shareholder’s meetings, annual filings and the submission of all associated forms and reports. In addition, corporate by-laws and documents such as the operating agreement (LLC) or shareholders’ agreement (S Corp, C Corp, PC, MSO, etc.) must be reviewed and updated to reflect changes in the law as well as updates to corporate policies and procedures, employee handbooks and all aspects of employment and related practices. Employees must represent your organization in a legal and ethical manner and internal programs to ensure compliance with these responsibilities must be consistently applied, managed and updated.
Managing those who are selected to serve on the company’s Board of Directors and all details associated with board meetings, agendas, keeping the minutes, communication, on-going education and fulfillment of fiduciary duties relieves leaders and executives of compliance minutia allowing them to focus on critical issues associated with the direction of the company and corporate decision making.
Corporate governance and compliance in a medical practice or healthcare related business such as a Management Service Organization or MSO is an essential business practice. Federal, state and local laws, ordinances and regulations are much more extensive in the healthcare industry than for other business entities. Effective healthcare corporate governance and compliance protects not only the practice or healthcare business entity, but the licenses of the professionals who own and operate them.
A sound corporate governance and compliance strategy also increases the value of the organization or corporate entity during a merger or acquisition.
You Need Experienced Corporate Attorneys to Help Ensure Corporate Governance and Compliance
The corporate law attorneys at the Watkins Firm have served San Diego businesses and corporations for more than four decades. This deep experience and legal skill ensures our customers can easily answer what is corporate governance and compliance in San Diego and Southern California and why is it important. We provide corporate governance and compliance services and also serve as corporate general counsel for many businesses throughout the region. 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.
