Every business owner understands the importance of being organized in order to stay on top of things. This is necessary when your business starts to grow and the state requires holding regular meetings involving the directors and its shareholders. It is for this reason, in relation to the idea of “Maintaining a Corporate Records Book” that we discussed and provided guidelines on “How to MaintainTax and Financial Records”
In this article, we are going to learn the details that you need to know on How to Keep Records of Corporate Minutes.
Your business’ corporate minutes ensures that you stay in compliance with the rules set by the state in carrying out your business operations and protect corporate liability.
Once your company has incorporated all types of changes to the organization, its operations, and related transactions must be included in the corporate records.
Operating a new line of credit, selling stocks, and associated arrangements won’t be possible without evidence of the boards’ approval.
In case an investor comes in or if another company wants to buy you out, it is important to have a well-organized record of corporate minutes.
2
Take Note of Relevant Details
It would be best to designate a secretary who will be responsible for taking notes of all decisions and formal resolutions by the board in each meeting.
Making a habit of creating minutes after each board meeting would ensure the accuracy of the details added in your corporate records.
3
Standardize format of all Entries
A well-organized corporate records book should have all the aforementioned components as stated in the previous articles on “How to Maintain a Corporate Records Book” and “How to Maintain Tax and Financial Records“ presented in a standardized format that is easy to read. For this reason, it is important to consider the following:
Make use of basic templates that you can readily search online
Purchase a software application to format and manage your corporate minutes
For quick reference, make sure to include a file-stamped copy of your company’s certificate of incorporation and bylaws, as well as your list of directors and officers.
