Companies are specialized organs of society that perform specific functions and must comply with certain regulatory frameworks. In order to maintain a healthy environment free of illicit business practices, it is necessary to be clear about the guidelines that guide them. These operating principles function as a channel between companies, the State, shareholders and workers, and can therefore be a good resource for the resolution of internal conflicts within businesses. In this article we will discuss what are some of the guidelines that govern corporate law in Venezuela?
What is corporate law and how does it work?
In previous articles we had already talked about what corporate law is and how it works in Venezuela. And we understood that this is a variant of law that allows making changes within the internal structure of a company, while adapting to the regulatory framework of each nation.
Corporate law operates under the regulation of different agencies in charge of ensuring the proper functioning of a healthy economic environment. In Venezuela, companies adhere to the regulations issued by the SAREN, SENIAT, the Social Security Law, the Civil Code, the Organic Labor Law, the Investment Funds Law, among others.
Corporate law guidelines in Venezuela
Corporate law in Venezuela is governed by different guidelines issued by the State and the supervisory bodies of each financial activity. All these rules regulate the commercial operations of companies in the country and therefore adhere to the principles of social, economic and legal responsibility.
This means that legally the guidelines on which corporate law in Venezuela is based are those of business recognition in favor of the economic development of the country. This means that if companies are responsible for their business operations under the Venezuelan legal framework, they will be supported and exempt from national and international penalties.
Corporate social, economic and legal responsibility in Venezuela
All companies operating commercially in Venezuela have a social, economic, legal and tax responsibility with the State. This is the entity in charge of regulating each commercial activity under the supervision of different institutions.
In this aspect, it is essential that companies have legal advice to comply with the regulations and permits corresponding to their business activities. For example, complying with workers in terms of social security, bonuses, and other rights set forth in the law. In these cases, companies should periodically check their practices to evaluate the results, thus facilitating the exchange of best practices within the framework of the law.
Propose risk prevention mechanisms
Another important aspect of the guidelines governing corporate law in Venezuela is that risk prevention mechanisms must be proposed. This allows companies to analyze and interpret the rules that govern them. In order to find effective solutions to the problems of their daily practices.
One of the most popular risk prevention mechanisms in Venezuelan law is the legal audit. This is a legal tool that allows correcting errors that are jeopardizing the operation of the company. Its objective is to review and analyze all the units of the organization to ensure that they are complying with the social, economic, legal and tax obligations they acquire with the Venezuelan State.
There are different types of audits such as quality audit, certification audit, compliance audit, among others. And all these types of audits must be applicable to companies, factories and other types of organizations that market their products and services in Venezuela.
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