The Benefits of Using the Right Entity Management System

The Benefits of Using the Right Entity Management System

December 7, 2017

December 7, 2017 | Proprietary and Confidential

David JefferisSenior Sales Engineer, CSC®

• With CSC for over 10 years, David has significant experience providing training, implementation, and consultative services to clients of CSC’s Entity Management. He also provides consultative services to clients who evaluate CSC’s suite of Matter Management solutions. David’s technology background includes Internet and data center/web hosting product management experience.

John LaPalomento

Product Manager, CSC®

• With CSC for over 7 years, previously as a sales team leader and a product engineer with CSC Matter Management Solutions. John works with Global Subsidiary Management (GSM) prospects to present an accurate and clear scope of services including demonstrating CSC Entity Management, and remains in contact with them as the overall relationship manager for all GSM clients.


Agenda

• What is Entity Management?

• Why Entity Management Matters

• The Subsidiary Lifecycle

• Common Pitfalls

• Problems with no system

• Challenges with the wrong system

• Entity Management System Advantages

• CSC Entity ManagementSM Services Defined

• Registered Agent

• Global Subsidiary Management

• Entity Management

• Questions

3December 7, 2017 | Proprietary and Confidential

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What is Entity Management?

• Managing and keeping your company in compliance with the numerous international, federal, state, and local requirements

• Managing data, documents, compliance, communication, collaboration, and reporting for all of your company’s entities

• Providing secure access to entity records to internal and external parties to create transparency


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Why Do Organizations Have Multiple Subsidiaries?

Organizations establish multiple subsidiaries for multiple reasons:

• The most common reason involves separating and managing liabilities and exposure

• For example if there is a major lawsuit against a single entity, the liability does not extend to other entities

• Multiple entities afford the option to select various entity structures (LLCs, Partnership, For Profit Corps) that come with unique tax consequences

• Having multiple subsidiaries allows an organization to sell, spin-off, or liquidate entities as they see fit

• In some regulated industries, subsidiaries are established to hold specific licenses


Why Does Entity Management Matter?

• Regulatory complexity is increasing

• International, state, county, and local filing requirements

• Organizations need efficient access to entity records that are accurate and complete




Managing the Entity Lifecycle

• Entity Management is an exercise in change management:

• Formations, Acquisitions

• Qualifications, Withdraws

• Dissolutions, Divestitures

• Officer/Director changes, Re-elections- Board and Shareholder resolutions

• Annual Report obligations

• Certificates of Good Standing

• Doing Business As Name (DBA) renewals

• Business License registrations and renewals

• Intellectual Property considerations:

• Domains

• Trademarks


What About International Entities?

How international subsidiary governance varies from US compliance:

• Additional filing obligations beyond “annual reports”

• Missing an annual filings can have serious legal consequences

• Requirements around where minute books must be stored

• Regulations around local directorships


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Common Pitfalls: No System

• Lack of visibility

• Information in silos

• Bottlenecks

• Manual updating

• Reporting challenges

• Not scalable


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Common Pitfalls: Wrong System

System is not intuitive:• Learning curve is too steep

• Result is a lack of organizational buy-in/adoption

• Platform is over-engineered

“Stand-alone” platform:• Burden on the shoulders of administrators to enter

all data and documents

Reporting Issues:• Reports are rigid

• Difficult to build simple reports

No “Exit Strategy”:• Some vendors make retrieving data/changing

platforms challenging


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Advantages to Having an Entity Management System

• Centralization• Having a single source of truth for your legal

entity data and documents

• Automation• Increasing productivity

• Adding efficiencies

• Collaboration• Comprehensive entity management is an inter-

departmental discipline that extends beyond the legal department to include:

• Tax, Accounting, Finance, Treasury

• Reporting

• Security


CSC Entity Management Services Defined

CSC Registered Agent Services

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SP1 files UCC on

“ALL ASSETS”.

CSC registered agent clients receive the benefits associated with CSCNavigator®, CSC’s unified legal and compliance portfolio management system.

Benefits Include:

• Auto-population of entity data and documents

• Compliance Calendar

• Dynamic status updates

• Forms library and resources


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CSC Global Subsidiary Management Services

With our Global Subsidiary Management services, CSC takes a proactive approach to managing your compliance obligations in jurisdictions around the world. Our local presence and robust partner network—managed centrally from our U.S. headquarters—will help you meet your subsidiaries’ governance obligations with much less time and effort on your part.

Benefits include:

• Centralized global governance

• Knowledgeable, U.S.-based consultants

• Corporate Health Check

• Flat-rate pricing as opposed to hourly rates

• Filing services in more than 120 countries

• Flexibility to accommodate your needs according to jurisdiction


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CSC Entity Management

CSC Entity Management is completely integrated with CSCNavigator.

Benefits Include:

• Corporate data tracking

• Officer/Director management

• Minute book and document storage

• Document assembly

• Stock ownership management

• Doing Business As Name (DBA) management

• Organizational charts

• Section 16 filer

• Reporting


Questions?

Questions? Phone:

800.927.9800

Email:

[email protected]

Web

cscglobal.com

The Benefits of Using the Right Entity Management System

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