Governance and Compliance trigger points
We have taken on a new client and are understanding internal governance processes:
What is the board structure and how often do they meet?
Reviewing board minutes – do processes feel weak?
Who maintains the statutory register, Companies House filings etc.
Reviewing statutory books and Companies House filings as part of our audit work.
With existing clients, we need to consider the following:
Need to identify key ‘change events’ with any type of business – including:
Businesses looking to incorporate for the first time.
Any type of business restructure.
Shareholder / director / member changes – i.e. retirement, succession etc.
Mergers / acquisitions / demergers.
Conversions from LLP to Limited Company and vice versa.
Remuneration planning discussions with clients – does this trigger changes in shareholdings, varying share rights etc?
Bank funding requirements – have they changed, need to be renewed etc? When we are involved in business plans for clients –i.e. new start-ups.
What type of governance assistance and advice will they require on a quarterly, annual, adhoc basis?
When taking on clients from old advisers here is usually a gap in filings – especially where there have been recent changes in ownership – what were expectations around who maintained company records?
Where there have been recent share related transactions such as company share buybacks, who has dealt with the statutory filings? Are we satisfied there isn’t an understanding gap between the client and their legal advisers?
Succession planning discussions – are the owners of a business looking to retire? Is there succession in place and how will this work (i.e. transferring the business to children, new partners joining/ retiring etc.)
Contact: Tessa Harris, Head of Governance and Compliance Services