The record-keeping process used by a firm must include corporate minutes. They serve as a record of the decisions and activities taken at board meetings as well as proof that the board followed company protocol. But how frequently should business minutes be prepared? And what order should meeting minutes be taken?
The answer to the first query is straightforward: every board meeting requires the completion of company minutes. The board shall record the proceedings and decisions made at all meetings, special or regular. This helps shield the board from legal culpability should any problems later on arise by ensuring that there is a clear record of what was discussed and decided.
In terms of timing, it’s ideal to write up the minutes as soon as you can after the meeting. This prevents crucial facts from being overlooked and keeps the material current in everyone’s minds. The minutes should ideally be finished and distributed to the entire board for evaluation and approval within a week of the meeting.
The person who took the minutes (often the secretary) and the board chairman should both sign them after they have been approved. This offers more proof that the meeting’s actions and choices are appropriately captured in the minutes. The approved minutes should subsequently be stored with the company’s other crucial records, such as the bylaws and articles of formation. The board may occasionally need to review earlier minutes and make changes or revisions. This might happen if fresh information surfaces or if the original minutes contained an error. If this occurs, the board should make sure that all members are informed of the adjustments and include a note of the changes in the subsequent set of minutes.
In conclusion, it is important to create corporate minutes as quickly as feasible after each board meeting. The chairman and secretary should both sign the minutes before they are filed with the rest of the company’s significant papers. The board can make sure they are upholding their legal duties and maintaining an accurate record of their actions by adhering to these rules.