Madam CEO Food For Thought Today
Our very own Captain of the industry, teacher, mentor, role model and icon Dr. Esther Muchemi, founder and Group Chief Executive Officer of the Samchi Group of companies, has some food for thought today.
“WHOSE MONIES?
Your company’s finances belong to the company. This sounds like a contradiction, and yes it’s true.
Just as my money is mine and you can’t access it without me allowing you to, so is “your” company’s money.
But then you ask, “how do I survive and yet I have no other income after all?
I work and put in my hours all day, all week, all month, all year and indeed all my life?”
I hear you ask.
So, so true!
Yet the fact remains true, your company’s money belongs to it and not to you unless the company allows you to access it.
“How?” must be the question on your mind now!
From my experience, these are possible ways in which you can access the company’s finances-:
1)Getting paid for the work done.
Draw a salary for being the CEO, Finance manager, Marketing Director, etc., and this salary must be defined. It must be treated like any other person’s salary including paying taxes around it.
2)Borrow from the company adhering to the terms of borrowing, including interest.
Remember to comply with tax laws where this is concerned.
No friendly loans, fellow entrepreneurs!
3)Declare dividends in line with the policy of the company.
Again observe the law, including tax laws eg., witholding taxes.
4)Draw a director’s fee but again this must be governed by law and company policies.
5) “Thieving”. I.e., Illegal access to funds so to say.
Let it not be so.
Note, even assets bought in your name using the company’s resources must follow one of the above, i.e., from your salary, borrowed fees, dividends etc.
Do you think there is another way I have left out?
This sounds hard, and yes it is.
Keep it here, we will, next time, talk about how to take ‘cover’ on this matter. The processes etc., that keep the checks and balances.
Meanwhile internalize this- “Your company is yours only because of your shareholding. But by law it’s a legal entity by itself. Respect the boundaries!”May God continue to bless Madam CEO beyond unfathomable limits
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