Whether you run a small “mom & pop” business or your own corporation, disagreements are bound to happen. Corporate governance is one of many areas of business litigation, and it encompasses a wide range of disputes when bad practices reach a breaking point, such as extreme miscommunication or a severe ethical violation.
The experienced litigation lawyers at Pursiano Barry Bruce Demetriades Simon LLP work with businesses of every size and in every industry to understand long-term goals and resolve conflicts to better benefit your business.
In business, corporate governance is the set of guidelines and bylaws that businesses abide by and adhere to. These rules are key to balancing the delicate relationship between a company’s stakeholders, such as investors, customers, suppliers, management executives, the government, and the community. The driving force influencing corporate governance is the board of directors, in whatever capacity, who are responsible for ensuring the company follows the rules that have been set.
Businesses large or small have some type of system of good corporate governance, and with that comes numerous benefits in every area of operations.
If roles within the company are clearly defined and responsibilities divided, operating procedures within the company are much better understood both by employees and outside investors. Knowing how a business handles day-to-day procedures is important in building stakeholder confidence.
Investors are the lifeblood of small businesses and big corporations alike. They are more likely to invest in a company with a solid system in place, indicating good management. This, in turn, helps companies grow and expand in the communities.
Damage to a company’s reputation is difficult to bounce back from, but a business with a grounded system of corporate governance is less likely to suffer from a reputation blow. Having this established system of corporate governance shows the world and investors the company is worthwhile and helps increase the long-term value of the business.
Having an established board or group of individuals is essential when it comes to planning for a company’s financial future.
Businesses striving to achieve good corporate governance should avoid these five common examples of bad corporate governance. If these arise, it could mean a law firm, such as the civil attorneys at Pursiano Barry Bruce Demetriades Simon LLP, is needed to mediate. These cases include:
When bad corporate governance practices boil over, it can result in issues serious enough to require a skilled litigation lawyer to intervene. The team at Pursiano Barry Bruce Demetriades Simon LLP will walk you through the process in detail to ensure your specific needs are met to the highest satisfaction. Our attorneys provide expertise on all types of corporate governance litigation aimed at providing the best possible outcome for your business. Contact us today to schedule a free consultation!