For many business owners, they are unsure as to what laws they need to comply with when they set up their venture. Business owners have a legal obligation to ensure that they are compliant. While this can be difficult, you need to make sure that you are armed with the facts of business. This should be done before you embark on a lifetime of entrepreneurialism.
The Corporations Act affects businesses in a significant way. You need to know how to it affects your business in the long term. Let’s take a look at the basics of the Corporation Act and how it affects your venture.
What the Law Expects
As a responsible business owner, you will want to comply with the law. The law expects you to behave reasonably and without criminal activity. This is important. As the companies CEO, you need to have all of the information that is pertinent to your success. Without this, your business can fail. What is more, it may contravene the Corporations Act. You need to read up on this matter to ensure that you are compliant. Take a look at Corporations Act books from Lexis Nexis.
Finances and the Corporations Act
Financial affairs are the heart of the Corporations Act. Typically, you will be expected to do a plethora of things to make sure that your business is financially compliant.
You need to endeavour to pay your debts on time. Generally, you should be honest in all of your dealings. This means that you cannot be dishonest with your clients, employees or matters of finances. You need to have a sound awareness of what anyone within your venture is doing. This includes fraud. Typically, many businesses handle other client’s money. You need to ensure that you are following due protocols. If you do not do this, you can find yourself in a situation that could be deemed as money laundering.
Assessing company funds is critical. You need to make sure that your business is viable and profitable. What is more, you need to make sure that the money that is deemed as profit is exactly that. Keeping money within the business is important. You cannot move money around as you see fit. Good financial practice is at the heart of any successful business. What iOS more, it ensures that you are not breaking any laws and legislation that are in place.
You should always endeavour to make sure that you are aware of any nefarious financial activity. This may mean interviewing employees on occasion. If an employee is found to be behaving fraudulently or is money laundering, it is your duty to ensure that this is matter is dealt with. This may result in employee dismissals.
As a business owner, you have a civil duty. This is not only to your clients and employees, but to the government too. You need to make sure that all aspects of your company’s finances can be accounted for. You need to endeavour to ensure that your company is financially compliant with the Corporations Act.