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Good standing: Difference between revisions
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These documents may include its up-to-date [[constitutive documents]], most recent annual return, audited financial statements, register of shareholders, details of directors and officers and so on: all basic, formative stuff that any corporate undertaking sophisticated enough to concern readers of the [[Jolly Contrarian]] ought to be able to do on its ear, and which therefore ought not furrow brows of directors of that undertaking when it is is asked to give pre-contractual [[representations|assurances]] about its good standing in a legal contract. | These documents may include its up-to-date [[constitutive documents]], most recent annual return, audited financial statements, register of shareholders, details of directors and officers and so on: all basic, formative stuff that any corporate undertaking sophisticated enough to concern readers of the [[Jolly Contrarian]] ought to be able to do on its ear, and which therefore ought not furrow brows of directors of that undertaking when it is is asked to give pre-contractual [[representations|assurances]] about its good standing in a legal contract. | ||
Some obliging company registrars (in places like [[Luxembourg]]) will issue a [[certificate of good standing]]which, if given, ought to (but | Some obliging company registrars (in places like [[Luxembourg]]) will issue a [[certificate of good standing]]which, if given, ought to (but won’t) alleviate the need for a specific representation on this subject by the company. | ||
===Yeah, but what if my counterparty is not in good standing?=== | ===Yeah, but what if my counterparty is not in good standing?=== | ||
At the least it is indicative of shitty management, right? This is level 1, not-even-got-to-the-challenging-stage stuff. If your counterparty | At the least it is indicative of shitty management, right? This is level 1, not-even-got-to-the-challenging-stage stuff. If your counterparty can’t manage this, is it going to be able to make its payments and deliveries on time? | ||
In this day and age most company registries | In this day and age most company registries aren’t stupid enough to void contracts entered by companies that are not in good standing when they execute the contract — that would be to penalise an innocent third party for the local company's poor governance — but rules vary by jurisdiction, so be careful. | ||
But your onboarding and credit people ought to be — well — ''doing their job'', and if they are l, weaknesses in corporate governance should have made themselves known well before a [[certificate of good standing]] is revoked. | But your onboarding and credit people ought to be — well — ''doing their job'', and if they are l, weaknesses in corporate governance should have made themselves known well before a [[certificate of good standing]] is revoked. | ||
{{Ref}} | {{Ref}} | ||