HIQ Compliance Watching Service - ComplianceCheck
HIQ is pleased to announce that it has initiated a compliance monitoring service for our registered agent clientele. Once put in place, HIQ ComplianceCheck will poll the filing officers in those jurisdictions where the participating entities are formed and in those states where they are qualified or otherwise registered to do business. The overall purpose of this program is to monitor the status of these entities with the Secretaries of State on an ongoing basis throughout the year.
An initial inquiry will be made each year in May/June in an effort to determine whether the appropriate annual reporting requirements for that calendar year have been met in each state. A report - by jurisdiction - will then be prepared which verifies that the requisite filings have been made or indicate the future date that the annual filing will be due. Accordingly, any delinquencies with respect to these filings will be noted and a duplicate annual reporting form will be secured and delivered to you for completion.
This process is repeated in October/November at which time another summary will be provided – this time accompanied by a state certificate attesting to the good standing status of the entity in each applicable jurisdiction. This ‘second glance’ again affords us the opportunity to intervene in situations of non-compliance. If necessary, HIQ will then intercede, taking the steps necessary to avoid allowing a minor delinquency to become a more serious problem by assisting in the process to restore good standing status.
Delinquencies, rescissions and revocations have proved to be an obstacle to pending mergers, refinancing, financial closings and licensing renewals of all kinds. Many contracts, loan and leasing agreements dictate that a party’s good standing status is consistently maintained. In addition, a company’s goodwill becomes at risk – its name available for use by another entity – in many jurisdictions as a result of involuntary dissolution or revocation of authority for failure to comply with annual reporting requirements.
This service has proven to be particularly beneficial to publicly held companies and those entities whose affairs that are further monitored by additional state agencies, i.e. Public Service Commissions, Insurance and Banking Departments, Commerce Commissions and Boards of Quality Medical Assurance. Participation in this service is a simple, cost-effective yet effective way to protect a company’s authority to conduct its business activities.