The initial stages of planning and forming a business in San Diego are important to ensure that a business is set up for success in the future. After a business is formed and operating, it is important to remember, however, that there are a variety of legal issues that can derail the success of any business. Specifically, corporate governance and regulatory compliance legal decisions can have a dramatic impact on the future of any company.
Corporate governance and regulatory compliance pose a variety of complex business challenges and encompass a variety of legal issues. Corporate governance and regulatory compliance issues involve:
● Board of directors, including director responsibilities, management obligations, and fiduciary duties;
● Drafting Securities Act registration statements;
● The “Blue Sky Law” and other state and federal securities laws;
● Regulatory reforms, including the Dodd-Frank Act and Sarbanes-Oxley Act;
● Insider trading and ethical issues, including developing internal policies and complying with insider trading laws; and
● Financial disclosure, accounting, and reporting practices, including compliance with SEC reporting requirements.
A company that is well-organized and complies with the various corporate governance and regulatory compliance issues has a significant advantage over another business that is not organized properly. Failure to institute proper corporate governance and regulatory compliance controls can significantly affect a company’s bottom line. A recent dispute involving a former Netflix officer highlights how failing to manage corporate governance issues can lead to corporate disputes.