Updating the corporate minutes


06-Jun-2017 21:15

You may take a picture on your son or daughter’s first day of school, but I doubt you take a picture as they leave for school each and every day of the school year, year after year.

The same philosophy holds true for the corporate minute book.

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Actions outside those normal day to day activities, however, typically require approval by the Board of Directors, either at a meeting or in a consent.This is the safety valve – if an action was taken without the appropriate approval, the approval is given after the fact, an action the law also permits.Share ledgers are also an important historical reference in the corporate minute book that must be regularly maintained.For a business, the corporate minute book is sometimes treated as a book-end on the bookshelf, collecting dust, or perhaps even MIA. The corporate minute book may be the best evidence a shareholder can produce to assert his or her right to be personally protected from liability for corporate debts and obligations.



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