One of the requirements by law for all registered firms is that they maintain up-to-date records of deliberations and resolutions that arise at the firm official meetings. The records are contained in a binder or bound book and should be maintained at the firm registered office or official address for accessibility to all members of that firm. Minute books are basically binders or just files housing all corporate key resolutions and deliberations.
Among the documents you are likely to find in minute books, there are some that are required to be part of it by law. These are by-laws, articles of incorporation, certificate of incorporation, the minutes taken during directors and shareholder meetings, the resolutions by directors and shareholders, the shareholders register and ledgers, the share certificates and the shareholder agreements among several other documents considered official.
In a number of jurisdictions, the law does not specifically state that the book must be in existence. But the documentation in a proper manner and maintaining the same in a centralized place translates to keeping this book. As such, much effort and even budget is normally set aside for this purpose so as to keep in the safe side of laws.
The book is maintained not just to fulfill legal obligations. It is also necessary for the firm banking and financing activities. The banks will always ask for up-to-date records and documents and if the same are not well maintained, the unnecessary delays arise. In the same manner, it might be costly and time consuming to try gathering and updating records later on after the time in which events took place is long gone.
The other advantages of have well and updated records includes smooth operations and faster implementation of resolutions (ease of reference), the process of going public (issuing of shares) become easier, such matters as takeover, mergers, acquisitions and sale of business can be achieved much faster and facilitate general corporate activities. It is also required when conducting audits whether internal or external. In extreme cases, failure to keep these records is a recipe for cancellation of the certificate of incorporation.
In order to properly maintain these records, corporations have various options from which to choose from. They can either train their own staff so as to carry out this activity in a professional manner or engage their lawyer for the same job. Having employees do the job comes with many challenges such as loss of sensitive documents through the hands of interested parties. It also needs huge investment in employee training.
In that case, a lawyer may take over the process. This comes with several advantages to the firm. They are better equipped with the necessary skills required to properly maintain the legally required documents, the access is denied from unauthorized persons, there are no likelihood of lost documents and delays among several other advantages.
All deliberations and resolutions arising from an official meeting must be well documented and properly maintained in minute books for future reference. The job can only be carried out by well experienced staff or lawyers, as such; a significant portion of a firm budget should be directed to this.
Among the documents you are likely to find in minute books, there are some that are required to be part of it by law. These are by-laws, articles of incorporation, certificate of incorporation, the minutes taken during directors and shareholder meetings, the resolutions by directors and shareholders, the shareholders register and ledgers, the share certificates and the shareholder agreements among several other documents considered official.
In a number of jurisdictions, the law does not specifically state that the book must be in existence. But the documentation in a proper manner and maintaining the same in a centralized place translates to keeping this book. As such, much effort and even budget is normally set aside for this purpose so as to keep in the safe side of laws.
The book is maintained not just to fulfill legal obligations. It is also necessary for the firm banking and financing activities. The banks will always ask for up-to-date records and documents and if the same are not well maintained, the unnecessary delays arise. In the same manner, it might be costly and time consuming to try gathering and updating records later on after the time in which events took place is long gone.
The other advantages of have well and updated records includes smooth operations and faster implementation of resolutions (ease of reference), the process of going public (issuing of shares) become easier, such matters as takeover, mergers, acquisitions and sale of business can be achieved much faster and facilitate general corporate activities. It is also required when conducting audits whether internal or external. In extreme cases, failure to keep these records is a recipe for cancellation of the certificate of incorporation.
In order to properly maintain these records, corporations have various options from which to choose from. They can either train their own staff so as to carry out this activity in a professional manner or engage their lawyer for the same job. Having employees do the job comes with many challenges such as loss of sensitive documents through the hands of interested parties. It also needs huge investment in employee training.
In that case, a lawyer may take over the process. This comes with several advantages to the firm. They are better equipped with the necessary skills required to properly maintain the legally required documents, the access is denied from unauthorized persons, there are no likelihood of lost documents and delays among several other advantages.
All deliberations and resolutions arising from an official meeting must be well documented and properly maintained in minute books for future reference. The job can only be carried out by well experienced staff or lawyers, as such; a significant portion of a firm budget should be directed to this.
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