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IPO Listing Simulator

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  1. Simulator Overview
    3 Lessons
  2. IPO Listing Fundamentals
    7 Lessons
  3. Financial Readiness Assessment
    3 Lessons
  4. Legal and Regulatory Compliance
    3 Lessons
  5. Corporate Governance Review
    3 Lessons
  6. Investor Targeting and Roadshow Preparation
    3 Lessons
  7. Marketing Materials Development
    3 Lessons
  8. Financial Communications Strategy
    3 Lessons
  9. Underwriting and Pricing Strategy
    3 Lessons
  10. Due Diligence and Disclosure
    3 Lessons
  11. Filing and Regulatory Approval
    3 Lessons
  12. Closing and Listing
    3 Lessons
  13. Post-IPO Requirements
    5 Lessons
  14. Insights from your GrowCFO Community
    4 Lessons
  15. Closing Thoughts
    1 Lesson
Topic 4, Lesson 1
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Conduct Legal Audit

Dan Wells February 9, 2024
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Here’s your report that provides an overview of the current financial controls for the VSC company credit card, a summary of the identified gaps and weaknesses, recommended actions, and examples of how you could test the operating effectiveness:

You will need to perform this activity and address the issues identified across all financial controls to properly prepare for taking the VSC company public on the Bigland Stock Exchange by December 31, 20X5.

Legal Audit

Conducting a thorough legal audit is a crucial step in preparing for an IPO listing, ensuring compliance with regulatory requirements and identifying potential legal risks that could impact the success of the offering. The legal audit encompasses a comprehensive review of various aspects of the company’s operations, contracts, and corporate governance structures.

Compliance - changing procedures to adhere to regulations laws standards to avoid violation fines

Firstly, the audit focuses on corporate governance, assessing the company’s compliance with applicable laws, regulations, and industry standards. This includes reviewing the company’s articles of incorporation, bylaws, board composition, and committee charters to ensure alignment with regulatory requirements and best practices.

Secondly, the audit examines contractual arrangements, including customer contracts, supplier agreements, leases, and intellectual property licenses. The goal is to identify any contractual obligations, liabilities, or potential disputes that could impact the company’s financial position or reputation.

Additionally, the legal audit evaluates litigation and regulatory matters, including pending lawsuits, regulatory investigations, and compliance issues. By understanding the company’s legal exposure, management can mitigate potential risks and liabilities before going public.

Furthermore, the audit assesses compliance with securities laws and regulations, particularly in jurisdictions where the company operates or plans to list its shares. This includes reviewing disclosure documents, prospectuses, and offering materials to ensure compliance with disclosure requirements and anti-fraud provisions.

Overall, conducting a legal audit provides valuable insights into the company’s legal standing and helps management address any legal issues proactively. By identifying and addressing legal risks early in the IPO process, the company can enhance its credibility with investors and minimize the likelihood of legal challenges post-listing.

Participant Challenge

Your task is to conduct a comprehensive review of the supplier agreement with TechGlobe Inc., VSC’s primary provider of cloud computing services.

Focus on examining the terms and conditions related to the provision of cloud computing services, including service level agreements, pricing, payment terms, and termination provisions. Identify any potential risks, inconsistencies, or areas of non-compliance that could impact VSC’s operations or contractual obligations.

Your detailed analysis will contribute to strengthening VSC’s contractual relationships and ensuring operational efficiency in preparation for the IPO listing process.