Good Corporate Housekeeping... What it is & why it is important

A corporation must adhere to all government requirements, such as submitting annual report to various government agencies and maintaining necessary business licenses. A corporation must adhere to all corporate laws, which require annual shareholder meetings, board of directors meetings and minutes of those meetings. In addition, shareholders must be made aware of decisions that impact the welfare of the corporation. Any major decisions, such as mergers, acquisitions or liquidations, should not proceed without the required vote by the shareholders & Board of Directors.

Whether a corporation is newly formed or an established one, it is governed by rules, and is responsible for its compliance with regulatory requirements.

The cost of legal corporate housekeeping on an ongoing basis is far less than the expense and stress of playing catch-up in the face of a sudden government assessment. Failure of corporation to comply with the relevant obligations can lead to financial and criminal sanctions. So it is important to find a good business attorney who knows how to care for the health of a corporation by ensuring that it is up to date with required meetings, that minutes are properly recorded so that corporate structure is solid and documentation is in place. In this way a corporation can easily handle new opportunities that present themselves and the contingencies that might occur.

Atty. Stephen L. Yu (CPA, Lawyer), an expert in Corporate and Taxation Laws of “Bahandi” Consultancy & Management Inc., just recently conducted “ Good Corporate Housekeeping & Good Corporate Governance Seminar” to Bahandi’s clients last November 16,2018 at The City Sports Club Cebu to share his expertise on this matter. The clients recognized the full worth & implications of this activity as it unlocks the key to enlarging their territories in a breeze thru sound knowledge and application of Good Corporate Governance Principles.