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Shareholder and Founder Representation Services in Georgia


Kudos Georgia’s support for shareholders who aren’t actively engaged in the day-to-day operations of the company.

Georgia, a historic and picturesque country between the Caucasus peaks and the Black Sea, offers business opportunities. However, being a shareholder not actively involved in the firm’s operations comes with challenges like transparency issues. Kudos Georgia provides a unique solution by offering financial and auditing expertise locally.

Kudos Georgia offered a very interesting and necessary service to the corporate market of Georgia, which we called “Founder’s Representation”.


What does founder representation mean?

In Georgia, the number of companies with founders who are not actively involved in the day-to-day operations is steadily increasing. These individuals are commonly referred to as “passive shareholders” as they have delegated operational control to others. A passive shareholder is keenly interested in the firm’s development, the conscientiousness and effectiveness of the leadership, the policies guiding dividend declaration and distribution, the principles and amounts of employee compensation, and the allocation of funds for expenses.

To keep passive shareholders continuously informed about their company’s status, Kudos has developed the “Founder’s Representation” service line. We regularly analyze the organization’s performance, trends, and overall condition, providing comprehensive reports to the founders:

  • The company acquired goods/services at a reasonable price compared to market value, ensuring the prevention of embezzlement or misappropriation of funds.
  • Are there instances of hiring fictitious/virtual employees or service providers in the company and compensating them?
  • How does the firm handle state/local tax payments in adherence to legal procedures, and are budgetary funds used appropriately?
  • Are there any unjustifiable operating or non-operating expenses being recorded by the company?
  • Are there any instances of undocumented incomes, and if so, are they being spent in an untargeted and dishonest manner?
  • How accurately, correctly, and completely are accounting operations recorded promptly?

Simultaneously, during our comprehensive financial review and assessment of the firm, we furnish the founder with details regarding the trends in expenses and income. We present diverse financial reports, allowing the founder to formulate a clear understanding of the company’s financial standing.

It’s crucial to highlight that financial and/or management reports may be provided to the passive shareholder by the management. However, the founder cannot guarantee the absolute accuracy of these reports.


Kudos established the aforementioned service in direct response to the growing demand. Over the recent period, there has been a significant uptick in engagement from remote founders. We have meticulously crafted and documented detailed procedures to guarantee that passive shareholders receive the precise information they are most interested in.

Kudos to the founders!