Learn about the top 10 documents required for a successful corporate governance audit of your company in this informative blog by Vakilsearch. Ensure compliance with applicable laws and regulations by preparing these documents beforehand.

A Corporate Governance Audit is a comprehensive review of a company’s compliance with laws and regulations related to corporate governance, secretarial practices, and other legal requirements. It is a vital process for companies to ensure that they are meeting their legal and regulatory obligations and promoting transparency and accountability. One of the critical aspects of a corporate governance audit is the documentation that a company is required to maintain. In this blog post, we will discuss the 10 documents required for Corporate Governance Audit

Documents Required for Corporate Governance Audit

Below given are the top documents required for Corporate Governance Audit 

1. Certificate of Incorporation

The certificate of incorporation is the document that establishes the existence of the company. It includes details such as the name of the company, the registered office address, the date of incorporation, and the authorized share capital.

2. Memorandum of Association

The memorandum of association is a legal document that outlines the company’s objectives, the scope of its activities, and its relationship with shareholders and other stakeholders.

3. Articles of Association

The articles of association are the company’s internal regulations that govern its operations and management. It includes details such as the rights and responsibilities of the directors, shareholders, and other stakeholders.

4. Board Resolutions

Board resolutions are the official decisions made by the board of directors of the company. They cover a wide range of topics, such as the appointment and removal of directors, the approval of financial statements, and the issuance of shares.

5. Annual General Meeting (AGM) Minutes

The AGM is the annual meeting of shareholders where they review the company’s performance, elect directors, and approve financial statements. The minutes of the AGM must be maintained as per the Companies Act.

6. Statutory Registers

Statutory registers are records that companies are required to maintain under the Companies Act. These registers include the register of members, register of directors and key managerial personnel, register of charges, and register of contracts and arrangements in which directors are interested.

7. Financial Statements

Financial statements are the reports that show the company’s financial performance over a period of time. They include the balance sheet, income statement, cash flow statement, and notes to the financial statements.

8. Share Certificate

A share certificate is a document that certifies ownership of shares in a company. It includes details such as the shareholder’s name, the number of shares owned, and the class of shares.

9. Minutes of Meetings

Minutes of meetings are records that capture the proceedings of board meetings, committee meetings, and general meetings. They must be maintained as per the Companies Act.

10. Annual Return

The annual return is a document that provides information about the company’s directors, shareholders, and other key details. It must be filed with the Registrar of Companies (RoC) every year.

It is important to note that the above documents are not an exhaustive list, and there may be additional documents required based on the nature and size of the company’s operations.

In addition to maintaining these documents, companies must also conduct regular compliance checks to identify and address any non-compliance issues. This is crucial to ensure that the company is prepared for a corporate governance audit and can meet its regulatory obligations.

How to Conduct a Corporate Governance Audit of Your Company?

Conducting a corporate governance audit of your company involves several steps and procedures. Here’s a brief overview of the process:

• Appoint a Company Secretary in Practice: A company secretary services in practice is a professional who is authorized to conduct corporate governance audits. Appointing one is mandatory for companies to undergo a corporate governance audit.
• Collect All Relevant Documents: Gather all relevant documents required for the audit, including company incorporation documents, board and shareholder meeting minutes, share certificates, statutory registers, and contracts and agreements.
• Verify Compliance: Review the collected documents to ensure that your company is complying with all applicable laws, rules, and regulations. Check for any non-compliance issues and take corrective action if necessary.
• Report Findings: Prepare a report of the audit findings, including any observations and recommendations for improvement.
• Submit Report: Submit the audit report to the Board of Directors and file the necessary documents with the Registrar of Companies (RoC).
• Follow-Up: Conduct regular compliance checks and follow up on any non-compliance issues identified during the audit.

It is recommended to seek professional assistance from a company secretary in practice or a corporate legal services provider to conduct a thorough and effective corporate governance audit.

Vakilsearch’s Role in Conducting Corporate Governance Audits

Vakilsearch is a leading legal services provider that offers a wide range of services, including corporate governance audit. With a team of experienced company secretaries and legal experts, we help companies prepare for and successfully undergo corporate governance audits. We provide end-to-end solutions, including record-keeping, compliance checks, and filing of documents with the Registrar of Companies (RoC).

Conclusion

Maintaining accurate and up-to-date documents is crucial for companies to ensure compliance with laws and regulations related to corporate governance and secretarial practices. By maintaining the top 10 documents required for Corporate Governance Audit , companies can ensure that they are prepared for a successful corporate governance audit. Companies must appoint a company secretary in practice to maintain these documents and conduct regular compliance checks to identify and address any non-compliance.