1. Financial Statements:
Financial statements provide detailed information on a company's financial performance and are critical in assessing its overall health. They include the balance sheet, income statement, cash flow statement, and statement of shareholder equity. The balance sheet provides insight into a company's assets, liabilities, and shareholders' equity; the income statement reveals revenue, expenses, and net income; the cash flow statement tracks incoming and outgoing cash; and the statement of shareholder equity shows changes over time in the company's ownership.
2. Corporate Governance Practices:
This is a set of processes that ensure compliance with legal regulations, ethical standards, and corporate objectives. It includes internal audit systems, risk management policies, board oversight practices, executive compensation structures, anti-corruption measures, whistleblower reporting mechanisms, and conflict resolution processes. This information should be regularly reviewed to make sure it’s up-to-date and reflective of current best practices.
3. Risk Assessments Internal Controls:
Risk assessments help identify potential threats to a business before they become serious problems. An internal control system is designed to help mitigate those risks and ensure compliance with applicable laws and regulations. This information should be regularly updated, as new threats can emerge at any time and the company’s risk profile changes over time.
4. Compliance Documentation:
Compliance documents provide detailed information on how a company complies with governing rules and regulations. They include policies, procedures, audit reports, training materials, and other documentation related to regulatory compliance. Regularly updating these documents is important to ensure that they remain current with changing legal requirements.
5. Contractual Commitments Obligations:
A nonpublic company must keep track of all contractual commitments it has made to third parties. This includes leases, loans, supplier agreements, customer contracts, and other binding arrangements. It is important to regularly review these documents to ensure that they are still valid and up-to-date.
6. Shareholder Agreements Certificates:
Shareholder agreements set out the rights, responsibilities, and obligations of shareholders in a company. They should be updated as needed to reflect any changes in the company’s structure or operating procedures. In addition, shareholder certificates should be issued when new shares are issued or transferred. This ensures that each shareholder has an accurate record of their ownership stake in the company.
7. Tax Returns:
Tax returns provide detailed information about a company’s income, expenses, and taxes paid. It is important to regularly review tax returns to ensure accuracy and to ensure that the company is taking advantage of all available deductions and credits.
8. Regulatory Filings Investigations:
Regulatory filings document a company’s compliance with applicable laws and regulations. They include annual reports, public disclosures, SEC filings, and other documents required by government agencies. It is also important to regularly monitor regulatory investigations into the company's operations or personnel for any potential issues that could adversely affect its business or reputation.
9. Board Meeting Minutes Records:
Board meeting minutes provide detailed records of board decisions on key matters affecting the direction of the company. They should be regularly reviewed to ensure accuracy and to make sure that all decisions are documented properly. Additionally, board records should include information on board members’ qualifications, conflicts of interest, and any ethical issues the company may be facing.
10. Mergers Acquisitions Activity:
Nonpublic companies may engage in mergers and acquisitions from time to time. It is important to regularly review any documents related to such activities, including due diligence reports, contracts, and other legal documents. This ensures that the company has a clear understanding of its obligations and liabilities associated with the transaction.