One of the potential issues that have been identified in the past
situation involving the check forgery and money siphoning of Jane. It
can have a significant impact on the public offering. According to the
doctrine of the corporate officer, the court is likely to access the
liability “even on a corporate executive or officer who did not engage
in, direct, or know about a specific criminal violation” (Kubasek et al.,
2019). Executives are responsible for ensuring that the business is in
compliance with the legal requirements or law. The case study does
not provide any information as to whether Jane is involved in the
company. In case Jane is involved, it can be a hindrance to attracting
potential investors.
Another potential issue is discriminatory hiring. Tammy, the local girl
who had been working as the delivery girl for the company, applied
for the job position of bookkeeper. However, the company rejected
her application and hired Ted instead. Tammy had filed a legal suit of
sex discrimination against the company. This can affect the
reputation of the company in the market and give rise to issues while
making the company public. The company has to do something in
order to show that it follows gender diversity when it comes to hiring
practices.
Another potential issue could be the speculations relating to the
inaccuracies in accounting. While registering and making the
company public, it is essential to address the history, management, as
well as operations of the company. The company has made a good
decision to hire an experienced accountant. The accountant can help
in making the necessary and accurate corrections to the “cooked
books” in order to ensure optimum accuracy in the financial reports.
Additional audits, as well as verification, can help in reducing the
potential inaccuracies in the accounting of the company.
The analysis of the business and initial offering is just the beginning
of the company going public. The law requires disclosure of certain
important details of the company and record keeping. Therefore, the
company will have to prepare all the records and information for
appropriate disclosure. Going public may even require the company
to disclose about the executive compensation to all the employees
present in the company. So, before going public, it is essential for the
company to disclose the details to the employees within the
company. The company may also consider expanding its
management team through the hiring of an experienced HR manager
and operations manager to effectively lead the company.
References
Kubasek , N., Browne, M. N., Herron , D., Dhooge, L., & Barkacs, L.
(2019, January 14). Dynamic Business Law. McGraw Hill. Retrieved
April 8, 2022, from
https://www.mheducation.com/highered/product/dynamic-
business-law-kubasek-browne/M9781260247893.html
