Maintaining records of the official meetings is not a matter of choice for registered corporation, it is a legal requirement. The result of this is the minute books; files that contain the records of discussion and decisions that took place in the official company meetings. These and other important documents are maintained in the registered office or an official address for easy access by authorized employees and other parties that may require the same.
There are several documents that are required to be part of minute books. These include the certificates of incorporation and articles of incorporation, the minutes arising from official meetings such as those held by directors, shareholders and managers, the resolutions from the said meetings, the register of shareholders and that for ledgers, the share certificates, the agreements by shareholders and several other documents are may be specified by the company law.
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.
Other than for legal obligation, proper documentation of company records comes with several other advantages. It makes the management and general operation smoother as retrieval and reference can be achieved much faster. This also saves on unnecessary expenses, reduces wastage of man hour and contributes to overall profitability. This may not be the case if locating such documents was to be done at a future date long after it is overdue.
It also comes in handy when engaging in major business decisions that may change ownership structure such as mergers, acquisition and the sale of business or even in the initial and subsequent sale of shares through public offering (changing from private limited to public limited). When conducting various forms of audit, be it internal, external or even government audit, the book is very necessary.
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.
If the duty is trusted in hands of a lawyer, the firm benefits from their experience in legal matters covering documentation of records and deliberations, updating of documents is done well on time and the documents are more secured as they are out of reach of unauthorized employees and other individuals who may have conflict of interest.
The minute books are part and parcel of any organization. When well updated, the organization enjoys from many other advantages other than just fulfilling the legal requirements. This is where standards must be developed and budget set aside for this purpose.
There are several documents that are required to be part of minute books. These include the certificates of incorporation and articles of incorporation, the minutes arising from official meetings such as those held by directors, shareholders and managers, the resolutions from the said meetings, the register of shareholders and that for ledgers, the share certificates, the agreements by shareholders and several other documents are may be specified by the company law.
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.
Other than for legal obligation, proper documentation of company records comes with several other advantages. It makes the management and general operation smoother as retrieval and reference can be achieved much faster. This also saves on unnecessary expenses, reduces wastage of man hour and contributes to overall profitability. This may not be the case if locating such documents was to be done at a future date long after it is overdue.
It also comes in handy when engaging in major business decisions that may change ownership structure such as mergers, acquisition and the sale of business or even in the initial and subsequent sale of shares through public offering (changing from private limited to public limited). When conducting various forms of audit, be it internal, external or even government audit, the book is very necessary.
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.
If the duty is trusted in hands of a lawyer, the firm benefits from their experience in legal matters covering documentation of records and deliberations, updating of documents is done well on time and the documents are more secured as they are out of reach of unauthorized employees and other individuals who may have conflict of interest.
The minute books are part and parcel of any organization. When well updated, the organization enjoys from many other advantages other than just fulfilling the legal requirements. This is where standards must be developed and budget set aside for this purpose.
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