A priority for all companies is to safeguard the capital base and legal entities of the company. Only if the capital structure is correct can company operations have a solid environment upon which to operate. The Symfact Board and Entity Management solution combines all of the operational and administrative tasks that any group must fulfil with respect to shareholdings and legal structures. Legal Entity and Board management is often still not recognised as a central task of a company and so small investment management tasks are administered in an uncoordinated manner by different departments of the enterprise. Symfact takes over the task of providing a central, secure repository of information for all concerned departments, group management and audits.
Benefits of Legal Entity Management
International businesses will incur greater inefficiencies and increased enterprise risk if they ignore the benefits of correctly managing their corporate structures and legal entities. Increasing regulation demands enhanced control and visibility of the corporate organisation to ensure sufficient compliance and reporting. Correct and effective Legal Entity Management also form an integral part of an environment enabling tax efficient and minimised costs of corporate structures.
Enhanced visibility and control will further enable rationalisation of subsidiary structures leading to optimal valuations and release of committed capital or trapped dividends.
Compliance and reporting requirements can become exponentially challenging when impacted by multiple reporting and accounting regimes. A simple unintended omission relating to a local financial reporting requirement can result in significant and costly penalties. A coordinated international strategy for Legal Entity Management also provides for consistent application of international standards such as IFRS or GAAP. Legal Entity Management must thus form an intrinsic part of any international organisation’s total Enterprise Risk Management strategy.
Benefits of a Web Application
Multiple departments within the modern enterprise require access to legal entity data. Such departments may include tax, contract management, treasury etc…. A web based application provides a central, single repository of all data which is accessible in a controlled and secure manner by the entire enterprise. This avoids inefficient and costly processes of obtaining data via telephone, email, or even snail mail. Additionally any required reports for regulatory or compliance submissions may be generated directly from the system as required.
Four aspects of modern Legal Entity Management are important:
– The fulfilment of legal obligations
– The optimal execution of daily activities with appropriate process support
– Value-based control of the investment portfolio
– The provision of an overall factual and historical record of the different pieces of detailed information and documents within this extensive domain.