Tuesday, August 19, 2014

Benefits Of Keeping Your Minute Books Up To Date

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.

When one has all these traits, all that he needs to do then is to find similar people and work wit them towards a single goal that everyone believes quite positively in. Since there are more people who have invested all their time, money and effort in a single endeavor, it is then important that the company exercise some sort of transparency. Keeping minute books is one way to reassure everyone that no one is taking advantage of the other.

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.

Like all collections of documents, this book is a very important possession that companies should guard with care. It contains every transaction, every record of actions ever done by the company in the pursuit of growth. It is some sort of trail that allows one to look back upon everything else just as easily as they happened only recently.

They are also being kept by the company for loads of underlying reasons. They serve as guides that allow the management to supervise all aspects of operations with ease. They also prove to be of much importance in terms of security and efficiency in all company undertakings. Since all of the records are important, it is essential that they are placed together in a secured area for easy consultation whenever necessary.

This record book should hold every single official looking piece of paper that has something to do with the management and operations of a certain venture. Most often, certificates and articles of incorporation can be stashed inside. Shareholder agreements, by laws, director and shareholder meetings and resolutions are also to be kept in one secure location.

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 makes each other place their trust upon one another. It is not a very surprising fact that people often push their personal interests over that of the entire group, and this is one of the reasons why most companies fall. The books then allow everyone to be aware of all the actions being done by the group, and all the little ones in between.

They also should be updated for easy review by third parties. Big companies do not do all the work by themselves. Sometimes they need the help of bankers, who will look into their records to determine if they are worthy of the assistance or otherwise.




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