It is foolhardy not to keep a record of important business decisions because it can jeopardize a company’s tax breaks and liability protection.
Fortunately, a systematic record of corporate minutes and resolutions, which document all important business decisions and the votes taken to approve them, goes a long way in solving problems.
Corporate minutes are crucial components for companies to grow and stay in the market; they can break or enhance your company’s reputation. So what does it take to take more effective corporate minutes at board meetings? Let’s start with the basics.
What are Corporate Minutes?
Corporate minutes refer to the documentation of what board members have discussed during business meetings, such as actions and decisions taken by the company.
Minutes of business meetings are usually recorded by the company secretary and then sent to all participants.
While the requirements for business meeting minutes vary by company and state, the primary goal behind documenting major decisions is often the same: to hold the company accountable for operating ethically in accordance with the company’s charter.
In addition, keeping a record of corporate meetings shows that the company holds frequent board meetings.
What should corporate minutes include and exclude?
Simply put, whoever is writing the corporate minutes should record the major decisions that were made, issues related to the organization’s strategic directions, and action plans that emerged from the board meeting.
It is not necessary to write every part of it. However, you should know what topics were discussed, who suggested what, and who is responsible for the assigned tasks.
Here is a list of some of the corporate deed requirements to keep in mind when registering:
- Name of the company
- Meeting date
- Time and place of the meeting
- Meeting type (annual meeting, special meeting, etc.)
- The names of the participants
- Name of the person who will chair the meeting
- If there were a quorum
- The reunion’s objective
- List of agenda items
- A detailed report of who voted and how
- When the meeting of the board adjourned
Apart from this, the corporate minutes should also indicate whether someone left or was late for the business meeting.
The hiring of new employees, financial transactions, the issuance of new stock, and the announcement of new board officers are some examples of the type of decisions that should be part of the minutes of corporate meetings.
While it is important to know what to include in a corporate meeting, it is equally vital to know what should not be part of your corporate meeting minutes.
Therefore, removing irrelevant information prevents your corporate meeting minutes from exposing your board to legal trouble.
- Any technical term
- personal observations
- aggressive comments
When should you use the corporate minutes template?
You should use a corporate minutes template when you need to write a summary of the topics discussed during the business meeting of the board of directors.
In addition, the board is responsible for fiduciary and legal duties, so it is crucial to keep a record of the actions and decisions that the board makes during a business meeting.
Furthermore, taking corporate minutes using board meeting software has become a good practice for improving corporate governance.
Using a template to record corporate minutes saves time and other valuable resources, including money. Instead of writing and organizing files on the fly, using a preset template makes it easy to record corporate minutes quickly.
Here is a free corporate minutes template that reflects the structure of the official business meeting:
Most states require C and S corporations to keep a record of crucial company decisions and meetings.
Oklahoma, Nevada, Delaware, Kansas, and North Dakota are the only states that do not require the retention of corporate minutes.
Likewise, corporations incorporated as LLCs are exempt from retaining corporate minutes.
Food to go
In the age of the digital world, you cannot waste a single second recording sloppy corporate minutes at your organization meeting. While keeping track of business minutes is not required in all states, doing so is always a smart move.
All it takes to record meeting minutes is an understanding of what should and should not be part of the minutes of a business meeting.
With these strategies in your backpack, you can seamlessly streamline your meeting follow-up and get back to focusing on achieving your business goals.
Categories: Technology
Source: SCHOOL TRANG DAI
