Did you know that good corporate minutes will protect you and help you comply with various business law issues? Putting together corporate minutes is a task most people would prefer to forego. However, these minutes are critical. They often play a significant role in business law situations. Minutes are admissible as evidence in court. If you’re keeping good minutes, you have a leg up when it comes to business law.
The first thing you need to do in regards to corporate minutes is establish a consistent policy. Who takes corporate minutes? How detailed should they be? The minutes are the permanent record of a board of directors meeting and the minutes should be complete and accurate. Someone who is not participating in the meeting should be in charge. A meeting participant will be too distracted to take complete notes.
The person who is writing the minutes should be neutral. He or she should not add personal opinions, criticism or other extraneous information. This could come back to haunt your company if you get into a business law situation. Create a template for minutes (and save it like any agreement for shareholders template, etc.), such as bullet points and attendees and the date and time. You should train the designated minute-keeper to take minutes in the recommended style so he or she is prepared to do a good job.
Another good practice is to have the meeting participants approve the minutes at the next meeting. This gives participants a chance the review the minutes and determine whether they reflect what took place. This is a good protection against business law situations.
The minutes don’t merely protect you in business law situations. They serve a variety of purposes. They can serve as a record of the decisions the board made and how said decisions were carried out. The minutes can serve another important purpose. If the minutes are sent to participants after the meeting, they can help remind participants of any commitments they made during the meeting. These may include assignments, deadlines and the parties responsible for various issues.
Although keeping corporate minutes can be a tedious task, doing it properly can protect the company from a variety of business law problems. It can also help the group learn and develop. The time and effort is well worth it.