Nevada and California Corporate Governance Attorneys
Helping Corporations Make Smart Decisions
In many ways, a business is only as successful as its leadership. In a corporation, that leadership takes the dual form of both corporate officers and the board of directors. Maintaining strong corporate governance is critical to the health of a company, as it shapes investor confidence and equity valuation.
Boards of directors will inevitably face challenging decisions and conflicting pressures from their shareholders. The choices they make will both have practical consequences and shape perceptions and the company.
Our Nevada and California corporate governance lawyers at Flynn | Giudici PLLC are prepared to consult and advise your corporation’s board of directors in every area of your business. We have a deep understanding of business law and can assist your board understand the potential implications of their decisions. Our team can also serve as the communications arm of your company’s leadership, serving as a window of transparency and relationship manager to shareholders and potential investors.
The Importance of Strong Corporate Governance
Investors like transparency. They want to know where their money is going, what it is in service of, how it is being used, who is using it, and what their return might be.
Effective corporate governance will help answer these questions and instill confidence in investors. If investors believe a corporation’s leadership have strong systems in place that historically result in rational, productive decisions, they are more likely to invest.
This means your business will need to establish a clear identity, intent, and direction. Through your leadership, you will have to communicate why your company exists, what it hopes to accomplish, and how it measurably plans to get there. As your company ages and makes successful decisions, you can foster trust among investors and the community at large.
Part of building that trust means proving that corporate officers, directors, and shareholders have aligned interests. Through the publishing of clear rules and systems, often communicated through a corporation’s formal bylaws, leadership can communicate to investors that everyone is working toward the same goal and is incentivized to work together in achieving it.
This also means corporate leadership should operate with some degree of transparency, clearly communicating to shareholders what decisions are being made and why. Should a significant sect of shareholders object to a position, the opposition should be recognized and addressed.
- List of corporate officers and their qualifications
- List of directors on the board and their investments in the company
- Governance documents registered with the state, including bylaws and articles of incorporation
Remember, for a corporate endeavor to succeed, you need investors to be excited about your company and its future. Building confidence and trust through transparency is one of the key tools in successful corporate governance.
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Licensed to Practice in Nevada & California
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The Role of Corporate Resolutions
Running a successful company and attracting investors also requires that you not run afoul of government regulators. To that end, most corporations are required to maintain formal records of key decisions, a process that forms a critical piece of corporate governance. These corporate resolutions chart every major decision a corporation’s board of directors makes, from the formation of the business to its dissolution or sale.
Maintaining records of formal corporate resolutions is required for businesses incorporated in Nevada and California. The decisions that lead to these records also tend to be the ones that can require legal or strategic business guidance.
Our Nevada and California corporate governance attorneys can consult with your board on many types of matters, including:
- Hiring of top-level executives
- Corporate officer promotions, terminations, or other changes
- Changes to the board of directors
- Changes to company bylaws
- Significant financial decisions, including taking out of corporate loans
- Significant changes to business strategy, including expanding into new marketplaces, offering new products, or radically altering branding or company identity
- Purchase or sale of corporate real estate
- New share offerings
- Mergers, acquisitions, and joint ventures
- Dissolution or sale of company assets
Many of the problems and decisions facing your board of directors will be difficult or even controversial, especially if the company’s shareholders are divided on the issue. Our team can draw upon our years of business law experience to advise on what course of action is likely to make the most strategic sense. We can also ensure that all decisions are properly documented and are consistent with all local, state, and federal laws.
How Ethics Can Influence Corporate Governance
Corporations owe a legal responsibility to serve the fiscal interests of their shareholders. That generally means maximizing profitability wherever possible: a situation where, in theory, everyone benefits. However, there are situations where other concerns can exceed the need to generate the highest profit possible.
Many investors take into consideration a company’s level of “good corporate citizenship.” This refers to the social responsibility corporations exercise in the course of conducting business, including how the entity engages with the community, its customers, and the environment. A corporation with a reputation for knowingly producing faulty products or engaging in environmental destruction might give some potential shareholders pause, for example.
Our firm can help your corporation evaluate its level of citizenship and identify vulnerabilities. We can also assist in crisis management and consult on whether board decisions might result in perception issues.
Good Corporate Governance Drives Investment
Inadequate corporate governance can quickly derail a company. Failure to cooperate with audits or government regulatory bodies, engaging (intentionally or not) in unlawful behavior, and refusing to recognize the will of shareholders can result in a loss of confidence, poor valuation, and fleeing investors. Therefore, good corporate governance is good business.
Our Nevada and California corporate governance lawyers at Flynn | Giudici PLLC are committed to the long-term success of your corporate enterprise. We can work with your directors on an ongoing or case-by-case basis, offering experienced counsel that helps them make informed, confidence-building decisions.
Together, we can work to keep your business in good standing and help it achieve its goals. Contact one of our attorneys today.