Case Studies
Costs that could have been avoided
A medium sized organisation had a dispute over a property purchase. The matter incurred unnecessary legal cost to defend. Had the organisation accurately recorded the property purchase in the Board minutes, this would have saved significant time and cost to defend the matter.
Avoid unnecessary penalies or fines
There are increasing obligations and penalties on directors, with directors being held personally accountable to put in place and maintain good governance principles and practices.
Submit statutory forms within the specified timeframes to avoid late fees or penalties. Implement new business practices to maintain compliance with changing legislation, such as the PPSA and the new National Privacy Principles.
We have never had a problem
Organisations can be lulled into a false sense of security, assuming that the level of compliance is adequate, as they had not incurred a compliance problem in the past. This can range from statutory compliance matters to general good governance practices.
“We have always done it this way” is not recognised by the Court as an acceptable excuse for not applying and maintaining good corporate governance in an organisation. Are you prepared to take the risk?
Sale readiness
Having the company binder, statutory and compliance documents and structure up to date will enable effective due diligence, instil buyer confidence that the organisation has its affairs and records in order, reduces the time to undertake an effective due diligence and endorses a purchase price reflective of a quality and efficient organisation.
Why
It is not just the high profile corporate collapses that are impacted by poor governance and company secretary practices. Small and medium sized organisations have incurred unnecessary cost or loss as a result of poor or ignored compliance and application of governance practices.
