What is that even, corporate housekeeping?

Fair question, because it is not as self-evident as I would like. Corporate Housekeeping is the term for keeping the legal administration of companies in order, or 'in good standing'.

So, for example?

The law and the articles of association of companies lay down a number of obligations that every company must fulfil. For example, the rules for appointing or dismissing directors and managers, and the corresponding entries in the Commercial Register. Rules for decision taking outside a meeting by the shareholder, or for the annual meeting of shareholders. Rules for the adoption and approval of the annual accounts. For starting and also dissolving the company.

Well, corporate housekeeping ensures that these legal actions are carried out neatly and on time, and also that they are recorded correctly.

Why is corporate housekeeping so important?

Another great question. Of course, you can just fiddle around, sign contracts without knowing who is formally authorised, leave the Chamber of Commerce for what it is. But if something does go wrong, it will go horribly wrong.

Do you have a dispute about a contract that was signed by someone who was not authorised to do so? Just try to prove it when your Chamber of Commerce registration was last updated five years ago. Is your company unexpectedly declared bankrupt and have the annual accounts not been approved correctly or on time? Then you can be held personally liable for all debts of your company.

But I work at a really big company, how bad could it be?

Then definitely! The larger a group of companies is, the easier it is to overlook errors. A good company database, filled with correct and up-to-date data and someone who can handle it, is then indispensable. Moreover, from such a database you can extract extremely important data that the management, shareholders and supervisory board want to see. For example, about the geographical spread of your most important holdings. An overview of all management and supervisory positions of the chairman. One place to quickly find all legal documents such as Articles of Association.

Tell me honestly, did you know that? Let me know in the comments below. If you'd like more information about what we can do for your company, contact us here.