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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.

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 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.

Most minute records contain just about everything else. Agreements and contracts, mergers, and similar partnerships make their way into the said book. It also contains resolutions and important decisions made by directors and shareholders. Company by laws and other important guidelines and regulations also make the cut.

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.

They also provide the needed transparency that helps maintain the trust that one has for each other. After all, investors and owners bring in more or less the same amount of effort, time, and money for the growth of the establishment in question. These records assure each one that no important decisions were agreed upon by the others without their knowledge and approval.

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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