Entrepreneurship is a major part of the success of the South African business environment. We boast a very diverse landscape of small and medium enterprises that started off with a single person with a good idea. In order to understand the corporate governance needs of your business, it is your first responsibility to identify the core competencies of your company. Never make the mistake of thinking that corporate governance is purely an administrative exercise to ensure legal compliance. It is as much a part of your business strategy as marketing and finance.
To start off with it is important to make the necessary choices regarding your governance structures:
- Will you be trading as a company or a cc? Do you know the difference?
- Do you understand the statutory requirements for your business and your industry?
- Have you been informed about the duties and liabilities of being a director?
- Are you making use of capital from outside investment and issuing shares? I f so, you must ensure that systems are in place to protect your shareholders.
- Ensure that all SARS registrations are in place and up to date.
- Plan for your yearly submission of your annual returns to CIPC.
There’s a very big chance that you are uncertain about how to address these issues and that you might not even have heard of some of these terms. It is important to know that you are not alone and that very few companies handle these issues in-house. We recommend that you find a company with whom you can partner to provide you with the answers and necessary services, as and when you need them. Make it their job to remind you of critical deadlines and submissions and use their services to draw up all internal documents in a correct and consistent manner.
The biggest mistake you can make is to let issues of governance drag you down into a pit of administrative processes that you do not understand or have the energy for. Spend your time on what you do best – outsource the rest!
CST has always aimed to assist SME entrepreneurs, owner managers, directors and executives on how to develop their commercial fundamentals and, by so doing, integrate good business practice and, ultimately, good governance principles, into their growing business.
“CST, making corporate governance work since 1995.”