Define: Good Standing

Good standing refers to a person or entity’s current status with respect to compliance with legal, professional, or regulatory requirements. In various contexts, such as business registration, professional licensing, or membership in organisations, being in good standing indicates that the individual or entity has met all necessary obligations, such as filing required documents, paying fees, fulfiling educational requirements, or adhering to ethical standards. Maintaining good standing is often necessary to retain privileges, rights, or benefits associated with the particular status or membership. Conversely, being out of good standing may result in loss of certain rights or privileges, imposition of penalties, or even suspension or revocation of licences or memberships. Therefore, individuals and entities are typically required to regularly monitor their compliance status and take appropriate actions to remain in good standing.

The state of an individual or a business being up to date or current on dividend payments, debt servicing, reporting requirements, or other obligations. Being in good standing may entitle a person or corporation to greater flexibility in the negotiation of transactions or debt repayments, and is a key component of good credit.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.