Important Regulations To Consider As A 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.
The company must also have the capacity to demonstrate corporate social responsibility at all times so that it may become regulatory sound to those communities around which it is found; for example it should have the capacity to provide scholarships and internship opportunities to those people around that community and therefore be able to assist in lifting their economic capacities.
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.
Another measure for the company to remain regulatory sound is through ensuring that its financial statements and books of accounts are constantly audited especially for publicly listed companies that are required by law to have their books audited before presenting them to the public.
Finally, it is important to consider the wage rate and working hours that the company’s employees are being exposed to because if the wage rates are fair as compared to those published by the wage bill and the working hours are those required by the legal framework, then that company is able to maintain a regulatory sound environment.
There are additional regulatory sound ideas that can be implemented as well but these are the most crucial and they should be considered at all times.
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