What Are The Most Significant Regulations That Will Affect Your Company?
Every company regardless of the country where it is located has to adhere to the rules and regulations that are unique to its country; however, there are some basic rules that apply across the board for any corporate institution that have to be adhered to in order for the company to remain relevant in becoming instrumental in performing its functions.
The first and most import regulatory sound measure that the company should adhere to is the maintenance of proper tax records that is required by the law of the country such that should any disputes arise with regard to the amount that is due to the company as depicted by the tax authorities; all these records should be intact.
The other thing that any corporate should ensure they are in compliance with to avoid negative regulatory implications is the reporting of financial statements which are regulated by the international financial reporting standards and should be adhered to at all times so the company’s records are regulatory sound in every possible way.
Corporate social responsibility is something crucial for a company to adhere to because it is required that a company should be socially responsible to the community within which it is established and should therefore be able to assist the members of the society within which it is around to remain regulatory sound for example through the provision of free medical clinics or offering scholarship and internship opportunities to these community members.
Another regulatory sound measure that corporates should implement is ensuring that the board of directors is composed of non-executive directors that will closely monitor the actions of the board of directors and provide and independent opinion of what needs to be implemented by the company.
The other thing that will make a company regulatory sound especially for publicly listed companies is the auditing of its financial statements to ensure that they are well reported and that there is a known and available auditor opinion that states what is the true and actual reporting of the financial statements and whether they are a true representation of the current affairs of the company.
The next thing that you need to know when it comes to being regulatory sound is that a company should be able to maintain a good working environment while ensuring the labor working hours are in consistency to what is legally required as well as the wage rates being consistent with the legal requirements in the state where it is established such that it is either the same or more than the required wage rates.
There are also additional matters that make a company regulatory sound but these are the most important.