Corporate Housekeeping in Manila, Philippines: Why It’s a Good Idea?

There are a lot of things a company owner should keep in mind, from its operations, bottom line, and even the legal requirements, which may be too much for them to deal with. Indeed, this is one of the reasons why business owners have their secretaries and many other employees. Tasks have to be distributed as it needs to be able to keep the business up and running. The legal aspect, on the other hand, can (and must) be taken care of by a trustworthy attorney. As a result, it’s more practical and highly recommended for companies to have and retain a lawyer to take care of corporate and legal housekeeping tasks.

Right now, you might be asking yourself what corporate housekeeping is, or how is it ideal for corporations. Well, then let us go ahead and start answering those questions and learn a lot more about this part of the industry.

What is Corporate Housekeeping?

Essentially, corporate housekeeping in Manila, Philippines refers to the number of tasks or duties that a corporate secretary needs to perform in order to keep a corporation in line with the legal side of things all throughout its operation. A corporate secretary may be a non-lawyer, though in any case, it is best to have someone who is familiar with corporate and business laws. The tasks and/or services under corporate housekeeping may vary as needed by a company and the type of business it operates.

How is it a Good Thing for Corporations?

The duties included in corporate housekeeping mostly involves meetings, contracts, record-keeping, and the likes which are all ideal and are very much needed for large scale companies such as a corporation. Apparently, these things will not be fully maximized by a small company or by a sole proprietor, though it is not impossible to still avail a business lawyer’s service if you own either of the two other types of businesses.

Why Do Corporations in Manila, Philippines Need Corporate Housekeeping?

It is imperative for a corporation to have a lawyer in every step and decision it makes because it is recognized as a stand-alone separate legal identity from its owner/s. This means that corporations constitutionally hold some of the rights and responsibilities that a person owns such as entering contracts, loaning money, filing a case and getting sued, hiring employees, owning assets, and paying taxes. These rights and responsibilities are all under the regulation of corporate law and can be handled by a corporate lawyer. Corporate housekeeping serves as insurance and protection from violating the country’s corporate laws.

What are the Tasks Included in Corporate Housekeeping?

• Processing of Licenses and Permission to Operate. Every company is obliged to follow all of our government’s rules and requirements that most of the time involve obtaining and maintaining mandatory documents. Such documents include a business license, certificates, and permits in compliance with the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Philippine Stock Exchange, and many more depending on the scope of your business. All of these are supposed to be taken care of during corporate housekeeping.

• Creation of Contracts, Certificates, and Documents. Since a corporation is often made up of a group of shareholders who are entitled to a part of the company called stocks, a great deal of terms and agreements will for sure be needed to maintain a fair and harmonious relationship between all of these owners. Not only that but having a corporation also means having to deal with investments, partnerships, new acquisitions, and employees wherein transactions would again be needing a contract. A corporate lawyer or secretary is the one responsible for creating such papers. Corporate housekeeping also covers the annual reports needed in a corporation such as General Information Sheet, Financial Statements, Annual Certification (for the Attendance of Directors during Board Meetings), notarial services, and the likes. This also includes reviewing of contracts and other documents such as a deed of sale, leasing contracts, etc.

• Implementation of Corporate Obligations. A corporation usually requires an annual shareholder meeting, a board of directors’ meetings, and a regular monthly meeting with employees and other important people depending on the activities of the company. Major decisions, changes, and other important things must be discussed with the board of directors and shareholders since it will greatly impact the business. These meetings (which must be precisely documented) are necessary for the company’s growth and healthy relationship with all of its owners and must never be neglected and are ought to be scheduled accordingly.

• Securing of Finances. The financial status of a company is one of the most important things that need to be handled very carefully and keeping the business’ finances in order is part of corporate housekeeping. It is not a secret that some companies go bankrupt not only because the business did not do very well but also because of corruption and finances that has not been handled correctly. If a corporation’s economics has not been managed, started accumulating debts and get sued, the court may even allow the creditors to come after the company owners’ personal assets. Employee’s salaries need to be assessed as well to make sure that no one is getting too much than what is needed or what is in the contract. Every transaction involving the company’s money must be thoroughly investigated to ensure that no money is being put to waste nor being stolen.

Corporate housekeeping is really not easy. It takes a lot of knowledge and skills to keep a corporation intact. If you are looking for an attorney to take good care of your company or for other legal services, Yap, Kung, Ching & Associates is highly recommended for their wide variety of well-experienced lawyers. Keep in mind that aside from corporate housekeeping, having a lawyer as a corporate secretary also entitles you to legal advice that’s why hiring one is always a great decision.

Are you planning to put up a business in the country soon? You may want to read this article titled “How Do I Register My Business with DTI? A Step-by-Step Process for DTI Business Registration in Manila, Philippines.”

Sources:

https://www.investopedia.com/terms/c/corporation.asp

http://www.gancaycolaw.ph/Services/Corporate-Commercial/seseourl/Corporate-Housekeeping

https://calcounselgroup.com/2014/04/25/corporate-housekeeping-the-basics-and-why-they-matter/

https://bizfluent.com/info-12029480-corporate-housekeeping.html