Riordan Corporate Compliance Plan Napoleon Melton, Jr. LAW/531 January 17, 2011 Terry Turner
RIORDAN CORPORATE COMPLIANCE PLAN
Riordan Corporate Compliance Plan Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise based in San Jose, CA. Riordan produces plastic beverage containers at its Albany, GA plant, custom plastic parts at its Pontiac, MI plant, and plastic fan parts at its Hangzhou, China facility. Major customers include automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers & bottlers, and appliance manufacturers. The company is noted for its Six Sigma business management strategy, research & development, and ISO 9000 quality management standards. The Board of Directors is responsible for executing the overall management of Riordan business affairs in accordance with state corporation requirements, the Articles of Incorporation, and its By-Laws. A nominating committee, who is responsible for overseeing the skills & characteristics of the Board members, recommending new Board members, and supervising the Board, is maintained by the Board of Directors. The Board of Directors also maintains the executive and auditing committees under their corporate governance plan (University of Phoenix, 2006). Having a corporate governance plan provides guidance in terms of business affairs management. However, it is imperative for Riordan Manufacturing to implement a corporate compliance plan to ensure the future viability of the company. The Riordan corporate compliance plan will serve as a guide on how the company will handle current and future issues. The company will illustrate how the corporate compliance plan will work through our current issues: governance, logistical, technological, and operational. Governance Riordan Manufacturing needs to add vital pieces of information to its corporate governance plan: board meeting minutes and departmental governance. The governance plan
RIORDAN CORPORATE COMPLIANCE PLAN
fails to specifically mention who tabulates the minutes of each board meeting. The governance plan fails to mention if board meeting minutes will be tabulated at all. The governance plan will also need a contingency plan in place if the primary person to tabulate the meeting is not in attendance. Under the Board Meeting Etiquette and Proceedings portion of Riordan’s corporate governance plan, it specifically states who establishes the agenda based on the submission of requested items from other Board members or the Chief Executive Officer (the Chairman of the Board), how & when the information pertaining to the agenda will be disseminated (the Board Meeting Package will be distributed to Board members on behalf of the Board Secretary three days prior to the Board meeting), and what should be included in the Board Meeting Package (all reports, financial or otherwise, and any presentations) (University of Phoenix, 2006). To prevent Riordan from having its company shut down for governance non-compliance, The Board of Directors, in consultation with the Chief Executive Officer and Chief Legal Counsel, will need to make an addendum to the Board Meeting Etiquette and Proceedings portion of the corporate governance plan. This addendum, entitled Official Board Meeting, will need to state that the Board Secretary will officially record the minutes each board meeting and keep an online file of the minutes. In the event that the Board Secretary is not able to record the minutes, the Chairman of the Board will have the authority to record the minutes and then electronically send the minutes to the Board Secretary for online filing. Logistics When Riordan Manufacturing initially expanded to Hangzhou, China, in 2000, the company decided that a partner who currently had facilities in place would be most advantageous for financial and shipping purposes. Today, most container...