What You Need To Know About Keeping Minute Books

By Deanne Shepard

Getting into the very confusing and fast paced world of business is not for the fainthearted. It takes one strong person to delve into the dog eat dog world of money and finances. To become a successful entrepreneur, one must have the perfect mix of courage, creativity, daring, nerve, and a meticulous appreciation for all the minute details.

Bigger companies have more things to attend to. The more the business becomes successful, the more it is riddled with controversies. Jealousy often pushes people to do all sorts of things, so heads of corporations are no strangers to the tactics and methods that competitors might play upon them. If, for anything, they come prepared for these attacks and secure the sake of their business empires by keeping well maintained minute books.

A corporate minute book is something that serves as an official corporate record. It contains the records of minutes of every single resolution ever passed in different departments, regardless of whether they have been successfully approved or not. It is a very important cache of confidential files meticulously maintained by a very capable company secretary.

This one leaves a trail that allows all owners, shareholders, and legal counsels to look back at all the decisions made by a corporation regarding every single transaction that has ever been made under the name of the corporation in question. It is also a very important audit back up wherein one can determine the effective dates for tax purposes and establish justification for fixed obligations and accrual of certain expenses.

They also allow for an unbiased audit. With a well recorded book, it is easy to determine the varied effective dates for taxes. They also allow the company to safely justify their fixed obligations and accrues. They serve very important roles in terms of company efficiency and security. Since they are of utmost importance, they need to be all kept together in a very safe location.

Not everything is kept in this record book. Most of the time, this includes records of agreements between parties, resolutions from shareholder meetings, decisive matters that rose up from director meetings, and the like. Articles of incorporation and corresponding by laws are also found inside.

Apart from ease of access, there is a wide spectrum of reasons that make a company keep an updated book. They, for one, protect every shareholder and everyone who has made a significant investment in a certain project. It allows these people to be given a certain degree of protection from personal liabilities.

It also allows one to take the required actions when the need arises. It prevents anyone from being left behind and kept in the dark regarding company decisions, especially as you have invested good money in the business along with the others. It allows a shareholder to be in the thick of things for him to be able to weigh his options and act accordingly.

Finally, they are perfect for third party review. There will always be times when businesses have to ask help from others. A well maintained book will make it easy for bankers and lenders to see if you are certainly deserving of the help they are willing to provide.

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