Year-end is a time for corporate governance and compliance but what is the process of governance and compliance? Why is governance and compliance important for any corporate entity?
What is Corporate Governance and Compliance?
What is corporate governance and compliance? Corporate governance is basically defined as the way a corporation is run and managed, and the purpose behind the company’s existence. Corporate governance touches every aspect of the company and all who work for it, from the boardroom through executives and managers and ultimately your company’s entire work force.
Year-end is a time for corporate governance and compliance as your business evaluates all that has happened in the past year and what your company wishes to accomplish in the coming year. Governance and compliance is primarily focused upon your corporate leaders, such as 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:
- The company’s vision and values
- Financial reports
- 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
Why is Corporate Governance and Compliance Important for Your Corporate Entity?
Corporate governance and compliance is a process working for improvement and based upon trust, accountability and ultimately transparency. Year-end is a time for corporate governance and compliance as leadership considers all that has been learned in the past several quarters while pursuing performance and profitability objectives.
Corporate governance and compliance should keep the corporate house clean by working to ensure regular updates of corporate documents and shareholders agreements, or the operating agreement in an LLC. The changes and lessons learned often result in changes to the shareholders’ agreement or operating agreement but those changes must be reflected consistently within the bylaws and articles of the corporation.
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.
Compliance tends to focus on tactical issues and changes required by new developments within the operations of the business itself, as well as any updates to federal, state and local laws, ordinances and regulations. Governance is usually focused upon the strategic aspects of running a business while balancing issues of risk, ethics, the law and capital gain.
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.
Year-End is a Time for Corporate Governance and Compliance in San Diego and Southern California
Year-end is a time for corporate governance and compliance in San Diego and Southern California. The experienced corporate attorneys at the Watkins Firm have more than 40 years of experience helping our business clients to keep the corporate side of the business in order. We provide sound general business counsel to our clients to help in the continuous development and implementation of governance and compliance.
Corporate governance and compliance is a continuous process of refinement, improvement, clarification and transparency. We invite you to review our recent 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.
