Most people who run their own business operate through a corporation or a company as it's commonly known. A company is a separate legal entity that acts independently. As an entity, it can do things like enter into contracts, own property and sue others.
A company's activities are tracked in its minute book. The minute book contains important information including the rules that govern the company, a register of the company's directors and shareholders and resolutions authorizing the company to take certain actions such as paying dividends or obtaining loans.
Other than it being legally required, it's important to have a minute book in order to provide updated records to people who regularly want to see them such as shareholders, buyers and lenders.
Generally, a minute book is kept at the company's registered and records office. Due to the sensitive nature of the information, a lawyer usually prepares and keeps the minute book at their office. Having a law firm act as your registered and records office ensures that your minute books are kept up-to-date which can save substantial money when you are thinking of borrowing funds or potentially selling the company. Rectifying an incomplete minute book can also be very expensive.
If you are thinking of incorporating a new company or would like to prepare a minute book for your existing company.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.