Mining Information on Companies

When a worker starts asking questions about the firm’s inner machinery that the top brass either can’t or won’t answer, sometimes public records can provide a clue.

Such documents, from Securities and Exchange Commission filings to court documents, typically can offer at least a window on a company’s chain of command, structure and financial health.

While pulling together the various sources of information can require travel and some old-fashioned detective work, more and more public documents are accessible via the World Wide Web.

Nearly every major event in the life of a corporation--or an individual--is documented somewhere.

The key is to know where to look. What follows is a guide to some of the most vital sources.

The Basics

Perhaps the least information is available on small, privately held companies. But there are a number of places to seek basic data about such firms. If the business operates in California, it most likely will have filed some kind of record with the secretary of state in Sacramento. Corporate records usually list the company’s top officers, name changes, and standing with the Franchise Tax Board. And basic financial information is often reported in publicly available business registers, such as those published by Dun & Bradstreet or Standard & Poor’s. Those directories are commonly found at local libraries. Registers may list a company’s annual revenue, officers and board members, and even where it banks.

SEC Filings

Even employees of a public company may be surprised to find what their employer discloses in its annual report, or 10-K, which must be filed within 90 days after the end of the firm’s fiscal year. While such reports typically represent the “party line” on the firm’s overall direction, they also usually contain financial data, information on research projects in development or other plans. Footnotes and fine print often warrant particular attention.

In the firm’s prospectus, filed when a company issues new securities, workers can learn what sort of risks may lie ahead in the marketplace--even early warnings of bankruptcy. And in its proxy statement, the firm will reveal its top executives’ salaries and stock holdings, special contracts, as well as information on pending legal proceedings.

Finally, in this era of rapid-fire takeovers and mergers, workers can keep a lookout for 13D and 14D-1 filings, which show when more than 5% of a class of the firm’s shares are changing hands.

SEC filings are available on the Web at https://www.sec.gov.

Court Documents

Legal filings represent one of the best resources for information about privately held companies. Whether a company sues or is sued itself, the records created can shed light on financial data, corporate practices and personal information on various employees from the top down. Depositions, transcripts, memos and court exhibits usually become part of the public record.

Personal and corporate bankruptcies, divorces, probate or estate filings and criminal charges may also lead to additional facts about a corporation’s internal workings.

Seeking out such records may require a great deal of time, but the key starting points locally are the offices of the court clerks at the U.S. District and Los Angeles Superior Courts in downtown Los Angeles.

Other Documents

Regardless of whether a company is public or private, virtually any time it interacts with local, state or federal government agencies, a public record is created. Contract bids, correspondence, regulatory filings, political contributions, lobbyist registrations and other documents are all subject to public review.

In addition, even nonprofit corporations must make some information available. Charities, foundations and other nonprofit organizations must release their tax returns. IRS Form 990 can show how the nonprofit raises and spends its money, and details assets and contributors, among other data. While the ease of obtaining such records varies depending on their age, volume and other factors, many of them can be requested under either the U.S. Freedom of Information Act or the California Public Records Act.

Information on how to write request letters is available at most public libraries.