Tuesday, April 22, 2014

Why Corporate Minute Books Are Important In A Corporation

By Essie Osborn

Whenever the directors, managers, leaders, or shareholders have meetings, one would always have to make sure to have a minutes of meetings. For those who do not know what this is, it is some notes that one would take down so that the corporation will have a record of all the important details of what happened during the meeting. Now these notes are then compiled into what would be known as corporate minute books.

Now the reason as to why this book has to be updated all the time would be because it is the reference that the higher ups would use whenever they would want to recall a certain event. Now during meetings, a lot of agreements and details would be mentioned. With the compiled minutes, one would be able to look back so that he can make more solid decisions.

Now the thing about records is that there must be written proof that such records actually do exist. Also, it is important to have the words of the parties written down and made official so that if there are any disagreements between the parties, then the minutes will come out. This will be able to help settle arguments with regard to deals.

Now references from this book would actually help accountants with the auditing. Now when it comes to agreements regarding transactions, the figures of each transaction that would be mentioned during meetings have to be very specific. Now by looking back at some of the records made in the book, the accountant will be able to tally the amounts.

Now whenever there would be some legal issues to deal with, the lawyer or attorney would most likely also be taking a look at these minute books. He may use these as as a basis to make legal claims or opinions. As long as a certain line is expressed in the minutes, then the lawyer may use it as an actual basis for a claim.

Now if the company is a stock corporation, then the book will also contain some information about the stocks. Now the details of the stocks that were agreed upon during the meetings would most likely be written in this record. So if there are any issues regarding the stocks that the company would be giving out to the public, the management may refer to this record in order to know how to go about.

Now there would also be some notes about how much the shareholders are getting too. Now the amount of dividends that the shareholders are getting would depend on the agreements and the company policies. Of course the agreements would turn up during the meetings which is why someone has to write the computations and terms.

By taking a look at its functions, it is no wonder why this is a very important component of a corporation. Basically it would contain all of the memories of the directors and the shareholders. So even if they would forget what they said during the meeting, the book will remind them of all the things that happened during that event.

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