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Often times the compliance requirements associated with the surviving and non-surviving entities are the last items to make the list - if at all. Most companies aren't even fully aware of what's needed beyond receipt of the merger evidence. Unfortunately, it is a critical and complex series of activities and not completing the steps poses significant short and long-term risk.
In this quick video, CT Corporation Senior Client Relationship Manager Mike Malkowski identifies the three key objectives to meet during post-merger work and offers tips on how to reduce your organization's exposure to risks that are completely preventable.
Pre- and post-merger corporate structures are really important. Ultimately you don’t know what you don’t know. You should have a good understanding of what’s out there in order to mitigate any risks or issues. Not knowing where your entities may be registered to do business—or where certain licenses have to be amended, transferred or cancelled—can certainly open your company to a lot of risk. Having an understanding of what you’re dealing with before you have to deal with it can prevent these issues.
Post-merger compliance requirements become an issue for companies because they comprise all of the things nobody wants to deal with. The 3 key steps of post merger work are—conduct an audit, plan your project, and execute upon the plan. Conduct a comprehensive audit to understand where your entities (survivor or non survivor) are registered. You also want to understand what business names are being used, the current status of those entities, and whether they need to remain active in those jurisdictions anymore. Determine who is the current registered agent, and who is responsible for the entities (officers and directors).
Post-merger compliance is a complex undertaking, so you want to make sure you designate roles and responsibilities. It’s one thing to know what’s out there and what needs to be done. It’s a completely other thing to know who is actually going to do it.
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