Minute books are a vital aspect of every business and/or company. In simpler terms, a corporate minute book consists of a record of important and valuable documents that Shows the Company’s worth and status. It is one of the first things regarding a business that is taken into accounts during events like taking loans or even selling the said company. The list of documents recorded in a minute book is as followed:
- Articles of Incorporation: This is a document that proves a company’s registration to the government in order to operate. It consists of various things such as the company’s name, address, purpose, identities of directors etc.
- By-Laws: These are rules and precautions set by a company to manage its workforce and institution.
- Resolutions of Directors, Shareholders and Meeting Minutes: This document consists of business resolutions or goals set by directors and shareholders. These resolutions are solidified as proper goals when meetings are held to make these decisions, everything decided and discussed in these meetings is written down and referred to as Meeting Minutes.
- Registers of Directors, Officers and Shareholders: As the name suggests, it holds records of all the directors, officers and shareholders that are/have been a part of the company since its launch.
- Shareholders Ledger: This document consists of the shares, possible sales and/or transactions and identification of the company’s shareholders.
- Forms: These are important forms, usually government-related such as Provincial registration forms that are present in a minute book of any company.
- Shareholder Certificate: These are documents that legally prove the shares a shareholder owns.
- Shareholder Agreements: Although these are not usually present in all Minute Books due to the fact, not all companies choose to incorporate this in their businesses, a Shareholder Agreement as its name suggests is an agreement document signed by either all or some shareholders that indicates the nature of how they communicate and interact.
Why is a Minute Book important?
A minute book is important for any corporation as it consists of crucial documents that act as a base for the structure of the said company. It manages all important documents in one place that can be needed to:
- Keep track of accounts for auditing purposes
- For banks to review in case of either granting loans, taxing or for capital purposes
- For potential shareholders to get an insight into how the company works and treats its shareholders
- To revisit legal documents such as By-Laws and Business Resolutions
- For inspections conducted by government institutions.
Minute Books hold importance also because they keep track of shareholders’ activities as well. If any shareholder chooses to sell their shares or is to be replaced for whatever reason, a Minute Book provides information of the said shareholder’s accounts, shares and decisions made that can be introduced and informed of to the potential replacement. This showcases how well a company manages itself and has vital information ready to be presented.