This chapter discusses corporate finance and the role of the financial manager. It outlines the four main types of business entities - sole proprietorships, partnerships, limited liability companies, and corporations. Corporations dominate economic activity due to advantages like unlimited life and transferable ownership. Financial managers work to maximize firm value by making decisions around new products, financing, and profit allocation. They operate within public stock markets and with financial institutions that help fuel economic activity.
This document discusses different types of business entities including sole proprietorships, partnerships, and corporations. It outlines the key characteristics of each type such as limited liability, ease of formation, taxation, and ownership structure. The document also defines micro, small and medium enterprises based on factors like number of employees, annual turnover, and capital investment. It provides examples of common business ventures that fall under micro, small and medium-sized categories.
The document discusses sole proprietorships. It defines a sole proprietorship as a business that is owned and run by a single individual. The owner has total control over the business and is personally responsible for its debts and liabilities. Sole proprietorships have advantages like easy formation, low costs, and full profit ownership for the owner. However, they also have disadvantages like unlimited liability for the owner and limited access to capital. The document provides definitions from various sources and discusses the characteristics of sole proprietorships.
This document discusses different types of business ownership structures and their associated liabilities. It notes that a sole proprietorship is a single individual who owns and operates the business and has unlimited liability for its debts. Most small businesses are sole proprietorships. While they are simple and inexpensive to start, sole proprietors have unlimited liability and it is difficult to attract investors or expand. Partnerships involve at least two individuals who share management, profits, and liability of the business. General partnerships make all partners liable, while limited partnerships limit liability for some partners. Partnerships allow founders to pool resources but profits and responsibilities must be agreed upon.
BDPA Charlotte chapter hosted Jan 2010 program meeting on the topic, "Running a Small IT Consulting Firm". The speaker was John Hoffler. This is the .ppt presentation that Mr. Hoffler used for his presentation.
The document discusses various legal issues relevant to entrepreneurs, including selecting a business entity, employment law, intellectual property, and liability. It provides an overview of common business entities (e.g. sole proprietorship, LLC), important factors to consider when choosing a structure, and requirements and protections of intellectual property mechanisms (e.g. patents, trademarks, copyrights). The document also outlines key employment law considerations regarding hiring, discrimination, handbooks; as well as potential liability issues businesses may face.
This document provides information and advice for freelancers and independent contractors regarding business structures and taxes. It discusses the advantages and disadvantages of being a sole proprietor, partnership, and incorporation. Key points include sole proprietors having complete control but being personally liable, partnerships having a broader skill base but shared liability, and incorporations providing limited liability but greater regulation. The document also outlines deductible business expenses and the importance of documenting expenditures to write portions off taxes. Freelancers are advised to expect uncertainty and prepare for various scenarios.
This chapter discusses corporate finance and the role of the financial manager. It outlines the four main types of business entities - sole proprietorships, partnerships, limited liability companies, and corporations. Corporations dominate economic activity due to advantages like unlimited life and transferable ownership. Financial managers work to maximize firm value by making decisions around new products, financing, and profit allocation. They operate within public stock markets and with financial institutions that help fuel economic activity.
This document discusses different types of business entities including sole proprietorships, partnerships, and corporations. It outlines the key characteristics of each type such as limited liability, ease of formation, taxation, and ownership structure. The document also defines micro, small and medium enterprises based on factors like number of employees, annual turnover, and capital investment. It provides examples of common business ventures that fall under micro, small and medium-sized categories.
The document discusses sole proprietorships. It defines a sole proprietorship as a business that is owned and run by a single individual. The owner has total control over the business and is personally responsible for its debts and liabilities. Sole proprietorships have advantages like easy formation, low costs, and full profit ownership for the owner. However, they also have disadvantages like unlimited liability for the owner and limited access to capital. The document provides definitions from various sources and discusses the characteristics of sole proprietorships.
This document discusses different types of business ownership structures and their associated liabilities. It notes that a sole proprietorship is a single individual who owns and operates the business and has unlimited liability for its debts. Most small businesses are sole proprietorships. While they are simple and inexpensive to start, sole proprietors have unlimited liability and it is difficult to attract investors or expand. Partnerships involve at least two individuals who share management, profits, and liability of the business. General partnerships make all partners liable, while limited partnerships limit liability for some partners. Partnerships allow founders to pool resources but profits and responsibilities must be agreed upon.
BDPA Charlotte chapter hosted Jan 2010 program meeting on the topic, "Running a Small IT Consulting Firm". The speaker was John Hoffler. This is the .ppt presentation that Mr. Hoffler used for his presentation.
The document discusses various legal issues relevant to entrepreneurs, including selecting a business entity, employment law, intellectual property, and liability. It provides an overview of common business entities (e.g. sole proprietorship, LLC), important factors to consider when choosing a structure, and requirements and protections of intellectual property mechanisms (e.g. patents, trademarks, copyrights). The document also outlines key employment law considerations regarding hiring, discrimination, handbooks; as well as potential liability issues businesses may face.
This document provides information and advice for freelancers and independent contractors regarding business structures and taxes. It discusses the advantages and disadvantages of being a sole proprietor, partnership, and incorporation. Key points include sole proprietors having complete control but being personally liable, partnerships having a broader skill base but shared liability, and incorporations providing limited liability but greater regulation. The document also outlines deductible business expenses and the importance of documenting expenditures to write portions off taxes. Freelancers are advised to expect uncertainty and prepare for various scenarios.
1. The document discusses various considerations for starting a small IT consulting firm, including collaborating with co-founders, choosing a business entity type, and initial corporate organization. 2. It examines different business entity types like limited partnerships, limited liability partnerships, and corporations. 3. The document also covers strategic planning, determining fees and rates, and pricing models like hourly billing rates and fixed price contracts.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
- Super Trustee Limited (STL) has two executive directors, Greg and Mike, with Greg being a New Zealand resident. There are currently no non-executive directors.
- STL adopts the definition of director independence from the Institute of Directors in New Zealand.
- STL's board composition aims to comply with regulatory requirements regarding the balance of executive, non-executive, and independent directors. Additional non-executive directors may be required due to the nature of the business.
- STL has policies and procedures in place for managing conflicts of interest, assessing board and individual director performance, and engaging external auditors. The trustee business is also operationally separated from other businesses.
The document discusses the role of a Non-Executive Director (NED) in a small or medium-sized enterprise. It defines a NED as a part-time director who is not involved in day-to-day management. The key responsibilities of a NED include providing strategic guidance, holding executive directors accountable, and ensuring good corporate governance. An effective NED should bring experience, skills, and an independent perspective to board discussions and decision-making. The document outlines best practices for NEDs, such as preparing thoroughly, constructively challenging proposals, and maintaining independence from management.
The Securities and Exchange Commission has been entrusted with a significant corporate compliance regulatory function, which has been expanded by seminal legislation in the recent past such as the Sarbanes-Oxley (“SOX”) and Dodd-Frank Acts. This webinar discusses board fiduciary duties and the tension between state corporate law standards and federal law. Board composition, independence, structure and processes (including best practices in regard to committees) are analyzed. Specifically, director independence is discussed as is audit committees and related requirements, regulations and exemptions. NASDAQ and the NYSE also have similar requirements for director independence and those are also discussed. The webinar also covers disclosure matters related to SOX compliance, including timing and content of an issuer's periodic disclosures. Both the legal requirements and best practices related to disclosure procedures and internal controls under SOX are examined. Means of controlling the costs of SOX, especially for smaller public companies, are also discussed, including trends in the industry related to high regulatory compliance costs. Finally, the applicability and best practices for privately held companies and SOX are considered.
Part of the webinar series: CORPORATE & REGULATORY COMPLIANCE BOOT CAMP 2021 - PART 2
See more at https://www.financialpoise.com/webinars/
In depth presentation on considerations for choosing the most beneficial entity for a particular business or financial situation - LLC, Sole Proprietorship, General Partnership, etc. Contact Goldin Peiser & Peiser, LLP for more information or visit www.gppcpa.com.
The document discusses new executive compensation rules and limits imposed on companies that received funds from the Troubled Asset Relief Program (TARP). Key changes include say-on-pay votes for shareholders, restrictions on bonuses and incentives to long-term restricted stock, and elimination of golden parachute payments. The Treasury will also review past compensation for certain executives. Regulations to provide details on these new rules will be drafted. The document urges TARP recipients to get involved to educate regulators and temper further restrictions, noting that compensation professionals should share market data and perspectives to help create thoughtful rules.
This document discusses different types of business structures including sole proprietorships, partnerships, and corporations. It explains the key characteristics of each structure such as ownership, decision making processes, advantages and disadvantages. For example, it notes that sole proprietorships are the easiest to start but have unlimited liability, while corporations have benefits like limited liability but are more complex with double taxation.
10 things non executive directors can do to satisfy their legal responsibilitiesDavid Doughty
The 2006 UK Companies Act, which sets out the legal duties and responsibilities of Company Directors, is one of the longest pieces of legislation ever written. Falling foul of the law can have serious consequences for directors including personal and potential criminal liability yet many directors, particularly NEDs, take on their roles in blissful ignorance of the law.
Before becoming a company director you should have a basic understanding of your legal duties and responsibilities and you should check for indemnity provisions in the company articles of association and your Directors’ and Officers’ (D&O) insurance arrangements.
Once in post, here are 10 things you can do to avoid the potential pitfalls:
The document outlines the corporate governance guidelines of Toll Brothers, Inc. as established by its Board of Directors. It discusses director qualification standards, responsibilities, access to management and independent advisors, compensation, orientation and continuing education. It also covers management succession planning, annual board performance evaluations, and notes the guidelines were adopted in 2002 and amended in 2003.
The board of directors is generally described in terms of its prominent structural attributes, including size, composition, and independence.
This Quick Guide examines the importance of these and whether they contribute to board effectiveness and shareholder value.
It answers the questions:
• What is the composition of a typical board?
• Which factors improve governance quality?
• Which factors do not?
• Can a board’s quality be determined by its structure?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
The document provides an overview of the roles and responsibilities of board members. It discusses what attracts and detracts people from board service. It emphasizes the importance of board members asking the right questions about the organization, their commitments, and potential conflicts of interest. The document outlines fiduciary duties including duty of care, loyalty and obedience. It discusses how board members can fulfill these duties through diligence, avoiding conflicts, and acting honestly. The document also addresses exposure to liability through negligent mismanagement, lack of authority, and breach of trust regarding investments and commingling of funds.
The finance director or chief financial officer has many responsibilities depending on the company. These generally include business and financial strategy, reporting and accounting, management of stock market and analyst relations, managing the financial staff, and contributing to strategic planning as part of the executive team. The role may also include responsibilities for IT, environmental, quality assurance, health and safety, and company secretarial duties depending on how the company is structured.
This document discusses the legal and tax implications of employing contractors versus employees. It outlines several tests used by courts and tax authorities to determine status, including control, ownership of tools, chance of profit/loss, integration, and permanency. The tax and legal obligations of employers differ significantly from those of businesses engaging independent contractors. Key areas that are addressed include payroll, benefits, insurance, termination issues, and intellectual property rights. The document provides advice on structuring relationships and contracts to minimize risks of a contractor being deemed an employee.
RBC Corporate Advisory Services provides a nine-step process for developing customized business risk plans. The process begins with a risk analysis report that identifies risks specific to the client's current business phase and life stage. It then reviews the client's corporate structure and insurance coverage to identify opportunities to better manage taxes over the long term. A cost sensitivity analysis is performed to ensure protection is adequate, appropriate, and cost-effective. The result is an integrated plan to reduce risks, minimize taxes, and facilitate business succession or exit while maximizing assets.
This document discusses factors to consider when exploring business succession planning. It outlines personal background factors, corporate background factors, and reviews of documentation. It also discusses the stages in a business cycle including the current operating stage, mature business stage, and succession/exit stage. The document provides potential issues to consider for each of these stages, such as corporate ownership structure, shareholders' agreements, estate planning, succession planning, and sale or divestment of the business.
This document is a business presentation on sole proprietorships. It defines a sole proprietorship as a business owned and managed by one individual. Key attributes are outlined, including that there are no formalities for creation, the owner faces unlimited liability, and management and control rests solely with the owner. Advantages include ease of starting and control, while disadvantages include unlimited liability and difficulty raising capital and hiring employees.
Sole proprietorships play an important role in the US economy, though they generate only about 6% of all sales. As the most common business structure, sole proprietorships offer business owners easy start-up, relatively few regulations, and full control over the business. However, sole proprietors have limited access to resources and lack permanence, with the business ceasing if the owner leaves. The biggest disadvantage is unlimited personal liability, meaning proprietors are legally responsible for all business debts.
The document discusses best practices for effective corporate boards. It notes that boards of small and medium enterprises often deal with operational rather than strategic issues and short-term goals. For high performance, boards should establish a clear mission and vision, decide on long-term strategies, and delegate implementation to management while exercising responsibility to shareholders and stakeholders. Top boards provide strategic leadership, policy guidance, and accountability.
New developments in neuroscience have opened up new ways to understand leadership. David Sales of First Ascent uses this to debunk widely held beliefs and to map out how leaders should perform today and in the future.
Forecasting the future for profit - SCIP presentationmilnerltd
At EE’s London office in May 2016, Milner’s Head of Market Analysis, Jonathan Davenport, gave a presentation at a Strategic and Competitive Intelligence Professionals (SCIP) event on how to support market and revenue growth with a market forecast. The event was attended by Fin Tech (including Sage), Telecoms (including BT), Energy (including Schneider Electric) and Bio-tech (including Smith Medical) companies and his presentation received excellent feedback.
1. The document discusses various considerations for starting a small IT consulting firm, including collaborating with co-founders, choosing a business entity type, and initial corporate organization. 2. It examines different business entity types like limited partnerships, limited liability partnerships, and corporations. 3. The document also covers strategic planning, determining fees and rates, and pricing models like hourly billing rates and fixed price contracts.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
- Super Trustee Limited (STL) has two executive directors, Greg and Mike, with Greg being a New Zealand resident. There are currently no non-executive directors.
- STL adopts the definition of director independence from the Institute of Directors in New Zealand.
- STL's board composition aims to comply with regulatory requirements regarding the balance of executive, non-executive, and independent directors. Additional non-executive directors may be required due to the nature of the business.
- STL has policies and procedures in place for managing conflicts of interest, assessing board and individual director performance, and engaging external auditors. The trustee business is also operationally separated from other businesses.
The document discusses the role of a Non-Executive Director (NED) in a small or medium-sized enterprise. It defines a NED as a part-time director who is not involved in day-to-day management. The key responsibilities of a NED include providing strategic guidance, holding executive directors accountable, and ensuring good corporate governance. An effective NED should bring experience, skills, and an independent perspective to board discussions and decision-making. The document outlines best practices for NEDs, such as preparing thoroughly, constructively challenging proposals, and maintaining independence from management.
The Securities and Exchange Commission has been entrusted with a significant corporate compliance regulatory function, which has been expanded by seminal legislation in the recent past such as the Sarbanes-Oxley (“SOX”) and Dodd-Frank Acts. This webinar discusses board fiduciary duties and the tension between state corporate law standards and federal law. Board composition, independence, structure and processes (including best practices in regard to committees) are analyzed. Specifically, director independence is discussed as is audit committees and related requirements, regulations and exemptions. NASDAQ and the NYSE also have similar requirements for director independence and those are also discussed. The webinar also covers disclosure matters related to SOX compliance, including timing and content of an issuer's periodic disclosures. Both the legal requirements and best practices related to disclosure procedures and internal controls under SOX are examined. Means of controlling the costs of SOX, especially for smaller public companies, are also discussed, including trends in the industry related to high regulatory compliance costs. Finally, the applicability and best practices for privately held companies and SOX are considered.
Part of the webinar series: CORPORATE & REGULATORY COMPLIANCE BOOT CAMP 2021 - PART 2
See more at https://www.financialpoise.com/webinars/
In depth presentation on considerations for choosing the most beneficial entity for a particular business or financial situation - LLC, Sole Proprietorship, General Partnership, etc. Contact Goldin Peiser & Peiser, LLP for more information or visit www.gppcpa.com.
The document discusses new executive compensation rules and limits imposed on companies that received funds from the Troubled Asset Relief Program (TARP). Key changes include say-on-pay votes for shareholders, restrictions on bonuses and incentives to long-term restricted stock, and elimination of golden parachute payments. The Treasury will also review past compensation for certain executives. Regulations to provide details on these new rules will be drafted. The document urges TARP recipients to get involved to educate regulators and temper further restrictions, noting that compensation professionals should share market data and perspectives to help create thoughtful rules.
This document discusses different types of business structures including sole proprietorships, partnerships, and corporations. It explains the key characteristics of each structure such as ownership, decision making processes, advantages and disadvantages. For example, it notes that sole proprietorships are the easiest to start but have unlimited liability, while corporations have benefits like limited liability but are more complex with double taxation.
10 things non executive directors can do to satisfy their legal responsibilitiesDavid Doughty
The 2006 UK Companies Act, which sets out the legal duties and responsibilities of Company Directors, is one of the longest pieces of legislation ever written. Falling foul of the law can have serious consequences for directors including personal and potential criminal liability yet many directors, particularly NEDs, take on their roles in blissful ignorance of the law.
Before becoming a company director you should have a basic understanding of your legal duties and responsibilities and you should check for indemnity provisions in the company articles of association and your Directors’ and Officers’ (D&O) insurance arrangements.
Once in post, here are 10 things you can do to avoid the potential pitfalls:
The document outlines the corporate governance guidelines of Toll Brothers, Inc. as established by its Board of Directors. It discusses director qualification standards, responsibilities, access to management and independent advisors, compensation, orientation and continuing education. It also covers management succession planning, annual board performance evaluations, and notes the guidelines were adopted in 2002 and amended in 2003.
The board of directors is generally described in terms of its prominent structural attributes, including size, composition, and independence.
This Quick Guide examines the importance of these and whether they contribute to board effectiveness and shareholder value.
It answers the questions:
• What is the composition of a typical board?
• Which factors improve governance quality?
• Which factors do not?
• Can a board’s quality be determined by its structure?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
The document provides an overview of the roles and responsibilities of board members. It discusses what attracts and detracts people from board service. It emphasizes the importance of board members asking the right questions about the organization, their commitments, and potential conflicts of interest. The document outlines fiduciary duties including duty of care, loyalty and obedience. It discusses how board members can fulfill these duties through diligence, avoiding conflicts, and acting honestly. The document also addresses exposure to liability through negligent mismanagement, lack of authority, and breach of trust regarding investments and commingling of funds.
The finance director or chief financial officer has many responsibilities depending on the company. These generally include business and financial strategy, reporting and accounting, management of stock market and analyst relations, managing the financial staff, and contributing to strategic planning as part of the executive team. The role may also include responsibilities for IT, environmental, quality assurance, health and safety, and company secretarial duties depending on how the company is structured.
This document discusses the legal and tax implications of employing contractors versus employees. It outlines several tests used by courts and tax authorities to determine status, including control, ownership of tools, chance of profit/loss, integration, and permanency. The tax and legal obligations of employers differ significantly from those of businesses engaging independent contractors. Key areas that are addressed include payroll, benefits, insurance, termination issues, and intellectual property rights. The document provides advice on structuring relationships and contracts to minimize risks of a contractor being deemed an employee.
RBC Corporate Advisory Services provides a nine-step process for developing customized business risk plans. The process begins with a risk analysis report that identifies risks specific to the client's current business phase and life stage. It then reviews the client's corporate structure and insurance coverage to identify opportunities to better manage taxes over the long term. A cost sensitivity analysis is performed to ensure protection is adequate, appropriate, and cost-effective. The result is an integrated plan to reduce risks, minimize taxes, and facilitate business succession or exit while maximizing assets.
This document discusses factors to consider when exploring business succession planning. It outlines personal background factors, corporate background factors, and reviews of documentation. It also discusses the stages in a business cycle including the current operating stage, mature business stage, and succession/exit stage. The document provides potential issues to consider for each of these stages, such as corporate ownership structure, shareholders' agreements, estate planning, succession planning, and sale or divestment of the business.
This document is a business presentation on sole proprietorships. It defines a sole proprietorship as a business owned and managed by one individual. Key attributes are outlined, including that there are no formalities for creation, the owner faces unlimited liability, and management and control rests solely with the owner. Advantages include ease of starting and control, while disadvantages include unlimited liability and difficulty raising capital and hiring employees.
Sole proprietorships play an important role in the US economy, though they generate only about 6% of all sales. As the most common business structure, sole proprietorships offer business owners easy start-up, relatively few regulations, and full control over the business. However, sole proprietors have limited access to resources and lack permanence, with the business ceasing if the owner leaves. The biggest disadvantage is unlimited personal liability, meaning proprietors are legally responsible for all business debts.
The document discusses best practices for effective corporate boards. It notes that boards of small and medium enterprises often deal with operational rather than strategic issues and short-term goals. For high performance, boards should establish a clear mission and vision, decide on long-term strategies, and delegate implementation to management while exercising responsibility to shareholders and stakeholders. Top boards provide strategic leadership, policy guidance, and accountability.
New developments in neuroscience have opened up new ways to understand leadership. David Sales of First Ascent uses this to debunk widely held beliefs and to map out how leaders should perform today and in the future.
Forecasting the future for profit - SCIP presentationmilnerltd
At EE’s London office in May 2016, Milner’s Head of Market Analysis, Jonathan Davenport, gave a presentation at a Strategic and Competitive Intelligence Professionals (SCIP) event on how to support market and revenue growth with a market forecast. The event was attended by Fin Tech (including Sage), Telecoms (including BT), Energy (including Schneider Electric) and Bio-tech (including Smith Medical) companies and his presentation received excellent feedback.
Directors of a newly formed company have several important duties, including acting in the company's interests, exercising reasonable care and skill, complying with the company's constitution, avoiding conflicts of interest, properly managing the company, ensuring compliance with tax and regulatory requirements, and ensuring the company remains solvent. This presentation outlines the key duties of a new director, such as acting within their authority, promoting the company's interests, exercising independent judgment, avoiding conflicts of interest, and dealing with employment, taxation, and insolvency matters. It is important for new directors to be aware of these duties after a company is formed.
The board of directors plays a central role in the corporate governance system. All countries require that publicly listed companies have a board. While their attributes vary across nations, they universally share common responsibilities.
This Quick Guide provides an introduction to the roles and responsibilities of the board of directors.
It answers the questions:
• What is the purpose of a board?
• How does a board function?
• What does it mean to be “independent”?
• What are the legal and fiduciary requirements?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
This document provides an overview of the role of directors under the Companies Act 2013 in India. It defines key terms like director, board of directors, managing director, whole-time director, and independent director. It discusses the positions held by directors and the changing role and state of directors under the new law. It outlines the duties and powers of directors, decision making processes, and significant provisions related to the appointment, disqualification, and vacation of director roles. The document is presented by Pavan Kumar Vijay from Corporate Professionals and provides a high-level summary of director responsibilities and governance under the Indian Companies Act.
The document discusses the roles and responsibilities of boards of directors. It provides definitions of boards and describes their key functions, including oversight of management, setting strategic direction, and advising management. It also discusses types of boards, such as unitary vs. two-tier boards, and common vs. staggered boards. Additionally, it covers characteristics of effective vs. ineffective boards and factors that contribute to balanced boards.
This document provides an overview of corporate health checks and directors' duties under Irish company law. It discusses key responsibilities like maintaining proper records, holding annual general meetings, prohibitions on transactions between directors and the company, and consequences of insolvency. The purpose is to educate company directors on their legal obligations and reduce the risk of breaches that could be reported to the Office of the Director of Corporate Enforcement.
In this practical session we explored the legal duties of directors and the difficulties which they may face. The session focussed on individuals who are directors for public sector companies, including their role, obligations and competing interests which may arise.
The Board Skills for Sport course is the only course designed specifically to help train board members in sport and recreation organisations.
Find out more by visiting: http://www.sportandrecreation.org.uk/programmes-initiatives/boardroom/board-skills-sport
This document provides an overview of a training course on the role of company directors and boards. It discusses topics that will be covered such as corporate governance, the legal and regulatory environment, and the director's role. An introduction is given by the presenter Paul Munden, outlining the format and goals of the participative course. The document then provides background on corporate governance codes internationally and in the UK, as well as the roles and responsibilities of directors, boards, and shareholders. Key concepts around directors' duties, conflicts of interest, and insolvency are also summarized.
The document discusses various forms of business ownership including sole proprietorships, partnerships, corporations, and other structures. It considers factors like capital requirements, risk, control, taxes, and advantages/disadvantages of each structure to help determine what type of business is appropriate. Sole proprietorships are owned by one individual while partnerships have two or more owners. Corporations are separate legal entities that can attract more investors but involve more complex formation and governance. Other forms discussed include cooperatives, state enterprises, cartels, trusts, and holding companies.
This document summarizes a presentation on directors' duties under UK company law. It outlines the statutory and common law duties directors owe to their companies, including the duty to act within their powers, promote the success of the company, exercise independent judgment, use reasonable care and skill, avoid conflicts of interest, not accept benefits from third parties, and declare interests in proposed transactions. It notes some of the difficulties and potential conflicts local authority nominees face as directors. It provides examples of common conflicts and recommends measures directors can take like being familiar with their obligations, ensuring proper governance, and declaring any potential conflicts of interest.
This document discusses establishing a strong ethical culture and addressing legal issues for new firms. It covers choosing an attorney, avoiding legal disputes, obtaining necessary business licenses and permits, and selecting an appropriate business organization structure. The main forms of business organization covered are sole proprietorships, partnerships, C and S corporations, and limited liability companies. Key factors to consider for each include liability, taxes, costs, and flexibility. Establishing a founders agreement is also recommended.
This document provides an overview of Directors & Officers Liability insurance. It begins with a disclaimer, then discusses how D&O insurance provides indemnity for legal liabilities that directors and officers face. It outlines the duties directors owe and who they are owed to. The document explains what triggers a D&O insurance claim and what losses are covered. It also discusses underwriting considerations, common claim types, and provides examples of real D&O insurance claims that have been paid out.
The document discusses the role and responsibilities of non-executive directors. It notes that while traditionally only appointed to large public companies, there is an increasing trend for medium and large private companies to also appoint non-executive directors. The key roles of non-executive directors are to provide independent oversight and advice to executive management, contribute objective perspectives in strategic planning and decision making, and monitor company performance and financial reporting. Specifically, non-executive directors are tasked with constructively challenging executives, ensuring accurate financial reporting and internal controls, and seeking independent advice when needed.
The document discusses different forms of business organization including proprietorships, partnerships, and corporations. It describes the key characteristics of each structure such as ownership, liability, management control, taxes, and other attributes. The optimal structure depends on factors like the capital needs, goals for control and decision making, tax implications, and ability to raise funds for the business. Later sections cover establishing an effective management team, board of directors, and organizational design.
This document discusses different legal forms of business organization including sole proprietorships, partnerships, corporations, limited liability companies, and non-profits. It provides advantages and disadvantages of each form and factors to consider when choosing a legal structure such as liability, taxes, ownership, and goals. Key points covered include types of partnerships and corporations, ownership structures, taxation models, and questions to ask to determine the best fit for a new business.
Choosing the Right Business Structure for Your Small Business in TexasBrandy Austin
A guide on choosing the right business structure for your small
business in Texas. This presentation will provide valuable insights into selecting the most
suitable business entity for your entrepreneurial venture. The first step in creating a business structure is deciding on the type of entity that best suits your needs. This SlideShare helps you pick the best business structure for you.
Note: This is not legal advice.
This document provides information about the sequence and content of a lecture on business organizations and corporate governance. The lecture will cover forms of business organizations like sole proprietorships, partnerships, and corporations. It will discuss important corporate concepts such as the memorandum of association, articles of association, prospectuses, and initial public offerings. The lecture will also cover corporate governance topics including the workings of corporate entities, basic governance principles, audit committees, and the workings of audit committees. The overall goals of the lecture are to educate about business organizational forms, corporate governance, and corporate accountability.
Les 10 FAQ: S'Implanter aux Etats-Unis Eliot Norman
un guide pratique aux questions les plus frequemment posee sur les implantations aux Etats-Unis: visas, contrats, incorporation, PI, impots, droit social.
Squared. Essential Guide for New Businesses in UKmondayfriday
Before Starting Up
Many people dream of running their own business.
In recent years this has become a reality for some who have been made redundant.
Others may decide to start their own business
in search of independence, to work for themselves
and be rewarded for their efforts financially.
Whatever the reason for considering setting up
in business, a number of challenges exist.
Despite considerable effort and financing which
may be poured into a venture, there is always a
risk of business failure.
Before you start your business, take some time spent to think through your plans as
this will minimise the risk of failure.
Think about the possible downfalls of being
self-employed. Certainty of income, both in
terms of quantity and regularity, disappears,
whilst fixed outgoings, such as mortgage
repayments, remain. Consider the loss of other
company benefits such as life assurance cover,
a company pension, medical insurance, a company
car, regular hours and holidays.
Consider the views of your family and friends.
Their support is essential. It is important they
understand that the administrative and financial
requirements of running a business can be time
consuming and stressful.
Success in business depends on many factors;
most importantly you need to critically review all
aspects of the business proposition before
progressing too far.
For easy reference, we have carved this guide
into 10 parts:
Part 1 | Selecting a Legal Entity for Your
Business
Sole Proprietorship
Partnership
Limited Liability Partnership
Limited Company
Business Structure – The Pros and Cons
Part 2 | Registering with the Tax Authorities
H M Revenue & Customs
H M Revenue & Customs – NI Contributions Office
H M Revenue & Customs - VAT
Tax Calendar
Part 3 | Accounting & Bookkeeping
Accounting Records and Record Keeping
A Word About Accounting Software Systems
Internal Control
Part 4 | Value Added Tax
Registration
Taxable Persons and Supplies
Tax Rates
Input VAT
Penalties
VAT Checklist
Money Laundering Regulations
Part 5 | Payroll Taxes
Helpful Publications
Do You Have Employees?
The Operation of a PAYE Scheme
Real Time Information
Benefits in Kind
Payroll Software
Part 6 | Income Tax and Corporation Tax
Which Accounting Year Should I Choose?
Tax Returns
Companies
Sole Traders / Partnerships
Tax Credits
Child Benefits
Part 7 | Cash Planning and Forecasting
Starting the Analysis
Cash Collections
Disbursements
Part 8 | Obtaining Credit and Financing
Your Business
How Do I Get the Money?
Business Plan
Financing Alternatives
Debt Financing Sources
Equity Financing Sources
Venture Capital Companies
Part 9 | Insurance
Required Policies
Commercial Liability Insurance
Property Insurance
Business Interruption
Fidelity Guarantee
Directors & Officers Liability
Key Person Protection
Identifying a Key Person
When is Key Person Protection Needed?
Partnership Protection
Shareholder Protection
Fee Pro
The document discusses the role and responsibilities of a non-executive director (NED). It notes that NEDs are not employees and are paid fees rather than a salary. They serve for a specified period of time on a part-time basis. As directors, NEDs have the same legal responsibilities to the company as executive directors. The document outlines typical NED fees, the process for appointment and resignation, and responsibilities such as attending board meetings, ensuring proper financial reporting, and providing independent oversight and strategic guidance to the company. It also discusses the rationale for family businesses to hire a NED to serve as an impartial advisor.
The document discusses the role and responsibilities of a non-executive director (NED). It notes that NEDs are not employees and are paid fees rather than a salary. They serve for a specified period of time on a part-time basis. As directors, NEDs have the same legal responsibilities to the company as executive directors. The document outlines typical NED fees, the process for appointment and resignation, and responsibilities such as attending board meetings, ensuring proper financial reporting, and providing independent oversight and strategic guidance to help the company's success. It also discusses the rationale for family businesses hiring a NED to provide objective perspective.
- Independent directors play an important role in corporate governance by providing oversight of management and protecting minority shareholder interests. However, their independence can be undermined by how they are selected and potential liability.
- Reforms are needed to ensure independent directors are truly independent, such as being appointed by minority shareholders and distinguishing their liability from executive directors. High-profile fraud cases have made many unwilling to take on the role of independent director due to reputation risks. Strengthening existing laws and commitments of independent directors could help curb management misconduct.
The chapter discusses establishing a strong ethical culture and addressing legal issues for new businesses. It emphasizes leading by example, establishing a code of conduct, and implementing ethics training. The document provides guidance on choosing an attorney, drafting founders' agreements, avoiding disputes, and obtaining necessary licenses and permits. It compares different forms of business organization such as sole proprietorships, partnerships, corporations and LLCs.
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1. Title goeshere
Subtitle goes here
Name Surname One
Name Surname Two
Growing pains: making sure
you stay legal
Directors – Living up to your responsibilities
27 June 2014
Dona Ardeman
2. Role of Directors
Introduction
o Directors’ general duties
o Directors’ conflicts of interest duties
o Shareholders’ claims for breach of directors’ duties
o How can you protect yourself?
o Other statutory responsibilities
o Credit crunch concerns
o Conclusion
3. Role of directors
Directors’ general duties
Four statutory general duties:
– To act within powers
– To promote the success of the company for
shareholders’ benefit
– To exercise independent judgment
– To exercise reasonable care, skill and diligence
4. Role of Directors
Duty to promote success
Duty to promote success of company – the six factors
likely consequences of any decision in the long term
interests of the company’s employees
need to foster the company’s business relationships with
suppliers, customers and others
impact of the company’s operations on the community
and the environment
desirability of maintaining a reputation for high standards
of business conduct, and
need to act fairly as between members of the company
5. Role of Directors
Duty to promote success
Duty to promote success of company:
– What does “success” mean? For commercial
companies - long term increase in value
– Duty subject to requirement to consider or act in
interests of company’s creditors
– No guidance on resolution of conflicts between
different factors
– Should the company:
o buy the cheaper, environmentally less friendly product from overseas
OR the more expensive, greener option that is produced locally?
o cut costs by reducing manpower locally OR by relocating its call
centre to a deprived region, creating lots of new jobs in that area
6. Role of Directors
Duty to promote success
Recording decisions:
– Greater bureaucracy at board level?
– Not just a box ticking exercise
– Options:
o list consideration of six factors for each decision in board minutes?
o say nothing & rely on supporting board papers?
o take a proportionate approach?
o position to date?
• Director acting in good faith not liable for process
failure if it would not have affected decision
7. Role of Directors
Conflicts of Interest
o CA 2006
– s.175 – duty to avoid situation in which director may
have interest which may conflict with company’s
interests (situational conflicts)
– Uninterested directors can authorise situation
provided Articles do not prevent authorisation
8. Role of Directors
Conflicts of Interest (cont.)
o s.175 CA 2006 – duty to avoid situational conflicts
A Person
commercial
property
company
on board of
management company
rents
Shareholder Director
9. Role of Directors
Conflicts of Interest (cont.)
o CA 2006
– s.175 – duty to avoid situation in which director may have
interest which may conflict with company’s interests
(situational conflicts)
o Uninterested directors can authorise situation provided Articles do not prevent
authorisation
– s.176 – duty not to accept benefits from third parties
– s.177 (and s.182) – duty to declare nature and extent
of interest in proposed (and existing) arrangements
with company
10. Role of Directors
Conflicts of Interest (cont.)
o s.177 (and s.182) – duty to declare interest in proposed (and
existing) arrangements with the company
A Person
property
company
owns
rents
Shareholder Director
11. Role of Directors
Conflicts of Interest (cont.)
o s.180(4) CA 2006
– s.175 – 177 CA 2006 not infringed if directors act in
accordance with provisions of Articles dealing with
conflicts, eg:
o Directors not accountable for benefit derived from authorised situation
o No need to disclose confidential information received in respect of relationship
which has been authorised
o Investor Directors will not infringe s.175 – 177 by virtue of fact they may also
be an employee, trustee, officer, shareholder etc of an Investor or its
investment manager
12. Role of Directors
Shareholders’ claims for breach of director’s
duties
o Derivative actions – used to be for the company to bring
(difficult)
o Unfair prejudice claim
13. Role of Directors
How to protect yourself? – penalties for breach
Directors’ duties – penalties for breach
– Action may be brought by:
o company
o shareholders (derivative claim or unfairly prejudicial conduct action)
o insolvency practitioner
– No codification of remedies for breach of directors’ duties
– Civil penalties - save for failure to declare interest in existing
transaction / arrangement which may be a criminal offence
– CA 2006 says consequences of breach are “ the same as
would apply if the corresponding common law rule or equitable
principle applied” (s178(1))
14. Role of Directors
How to protect yourself? – penalties for breach
Directors’ duties – penalties for breach
– Remedies for breach of fiduciary duties include:
o injunction (to stop an ongoing breach)
o setting aside the transaction
o restitution and account of any profits made or other unjust enrichment
o damages in respect of any loss suffered
o indemnity for costs or expenses incurred
– Remedy for breach of non fiduciary duty (eg duty of care and
skill) = damages
15. Role of Directors
How to protect yourself?
o Indemnity from company
o D&O insurance
o Shareholder ratification
o Proper systems in place
16. Role of Directors
Other issues – other statutory responsibilities
Other statutory responsibilities including:
– Statutory returns
– Preparation and filing of accounts
– Publicity requirements - on company’s business stationary,
website, e-mails and order forms
– PLUS:
o Compliance with other laws eg environmental law, Health & Safety,
employment law, data protection, defamation, libel and providing
misleading information, etc
o Payment of correct amounts of tax, VAT and NI
17. Role of Directors
Credit crunch concerns - directors’ duties when
company in financial difficulty
Directors’ duties when company in financial difficulty
– Whilst solvent, directors’ duties are owed to company for benefit of
present and future shareholders
– When doubt as to solvency arises (or company becomes insolvent)
common law duty (to act in interests of company) and CA 2006
duty (to promote success of company) is redefined
– Directors’ duties are still owed to company but also have to act in
interests of creditors with a view to minimising loss to creditors
from time to time
– Common law, statutory and regulatory duties are relevant
– Breach may lead to personal liability and possible disqualification
18. Role of Directors
Credit crunch concerns – wrongful and fraudulent
trading
Wrongful and fraudulent trading
– Wrongful trading
o applies where company gone into insolvent liquidation, therefore retrospective in application
o civil claim by liquidator in course of winding-up
o personal liability for directors – may be required to make contribution to company’s assets
– Aims to deter directors from continuing to trade where there is no
reasonable prospect of company avoiding insolvent liquidation – any kind of
act or failure to act (unless it minimises losses to creditors) may attract
liability
– Fraudulent trading
o applies in circumstances which amount to carrying on business with intent to defraud creditors
o potential for civil claim by liquidator
o court can order any person concerned to make a contribution to insolvent company’s assets
– Fraudulent trading is also criminal offence
19. Role of Directors
Credit crunch concerns – other issues
Other issues
– Section 212 Insolvency Act 1986 – misfeasance
etc – misapplication of company property eg:
o transactions at undervalue
o granting preferences
– Disqualification of directors
20. Role of Directors
Credit crunch concerns – some practical
considerations
Practical considerations
– Avoid incurring further debts, so far as possible
– Hold regular board meetings to review situation, consider as much
up-to-date financial information as possible and document all
decisions reached at such meetings
– Seek regular advice from insolvency practitioner/company’s lawyers
regarding company’s viability and best way to proceed
– Resigning as director may not be viable option
– Check D&O cover for liabilities relating to insolvency and consider
precautionary notification?
21. Companies Act 2006
Where can you go for help?
Further information is available from:
– Mills & Reeve CA 2006 website page at: http://www.mills-
reeve.com/companies_act_2006.asp
– Mills & Reeve briefings – What you need to know about the
Companies Act 2006
– Mills & Reeve seminars and bespoke training
– Department for Business Innovation and Skills website at
http://www.dti.gov.uk/bbf/co-act-2006/index.html
– Companies House website at http://www.companies-
house.gov.uk/companiesAct/companiesAct.html