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 most important regulatory sound technique that a company needs to implement is the use of proper tax records that need to be maintained for the required period which is normally more than five years in most countries in order to ensure the records at the tax authorities is similar to those which you have and therefore avoid losing out on any major losses or additional penalties from the tax authorities.
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 other thing that will make a company regulatory sound is adhering to corporate social responsibility standards that dictate a company should be able to maintain a certain state of responsibility to the community within which it is established through the introduction of internship and scholarship opportunities.
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.
The next regulatory sound measure that every company needs to monitor and implement is ensuring that its wage rates are consistent to the required wage rate bills as well as the working hours and environment is sufficient to allow work to be carried out in a safe manner and without anyone feeling oppressed by the standards of working.
There are also additional matters that make a company regulatory sound but these are the most important.