Do I need to prepare written minutes of corporate meetings?
Most business corporation laws require a corporation to
keep accurate records and books. With respect to financial and
accounting records, this is obvious. However, there is no absolute
requirement to prepare written minutes of meetings (minutes are
simply a written record of the meeting usually prepared by the
corporate secretary) but the following are a few important reasons
why it is highly advisable to do so.
All important business decisions should be documented in
writing. This will help substantiate corporate actions against
attacks by the IRS or creditors.
- Minutes help resolve disputes between shareholders or
directors of a corporation with respect to actions taken or
agreements made. - Minutes in your corporate records help provide evidence that
you are complying with corporate formalities.
Author: Robert Montgomery
Attorney Robert Montgomery has been counseling and incorporating businesses for more than 20 years. During that time, he's helped set up more than a 1000 corporations and limited liability companies (LLC's). He's a business owner himself and has been corporate legal counsel for numerous small business corporations. He's presented lectures and seminars on the benefits and procedures involved with incorporating or forming LLC's and how to operate them for maximum benefit. View all posts by Robert Montgomery
