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Basic Information On Minute Books

By Deanne Shepard


Running a corporation or a company of sorts is no easy feat. It takes special people with their innovative ideas to make one small business grow from a small shop to a big group of companies. It needs daring, creativity, bravery, cunning, and a love for details and organizations.

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.

This book, like most others, tell a pretty engaging story. It tells about the history of the entire corporation, from its humble beginnings to all the things it has ever undergone just to get to the point where it is as of the present. This very important story is nestled in the arms of the company secretary, one who also serves as a scribe that jots down the new chapters in the tale of growth of a certain venture.

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.

There are many reasons why these records should be maintained and updated as often as possible. For starters, they can be used to protect all shareholders from personal liability issues. A well maintained book allows every investor to take advantage of the liability protection that each company is required to provide. A corporation is only as good as its books.

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.

Lastly, they allow third parties to look into it with ease. Most companies often turn to these third party providers for help, such as bankers and other financiers. A well updated plan will help the company receive all the assistance they can get.




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