Running a small business is a constant challenge. Business owners are constantly striving to find the balance between offering unique products and services at competitive prices with the never ending amounts of time spent administrating the business.
All too often, important tasks, such as corporate formalities are set aside to be completed only when an banker, attorney, or an accountant tells you that they must be done.
Every stock corporation, limited liability company, and not for profit corporation must create corporate minutes, and should do so at least once per year to memoralize the special and annual meetings of the Board of Directors & Shareholders and Managers & Members.
Here’re the advantages of creating corporate minutes for your business
Corporate Minutes Provide Legal Proof of Corporate Decisions
Minutes are used the written history of a company. They document what actions the company’s officers, directors, managers, and owners have taken and considered. Good corporate minutes can be used as a defense to various legal actions, help speed up audits, and can help defense against certain claims by the Internal Revenue Service.
They Consist of Crucial Information
Considering the fact that, meeting minutes help protect your company by documenting institutional memory of the most important aspects of your company’s tenure. Details concerning corporate bank accounts, changes to the company bylaws, staffing, ownership must all be memorialized in minutes. Over time, the corporate minutstell the history of your business, and how it has operated. This can significantly increase it’s value – which is very helpful in obtaining bank loans, or upon sale.
They Help in Improve Corporate Identity
As we have already discussed that meeting minutes are truly essential for maintaining your corporate status under the law, they eventually help in enhancing your corporate existence. Since they are recognized by the courts and IRS as legal documents, you can use them as a proof for showcasing your corporate existence.
They Help in Streamlining Your Business Operations
Since meeting minutes include all the possible details about the corporate decisions made by the company over the years, they help in providing enormous information to the staff, which help your business function smoothly. For example, if somebody attending the annual meeting for the first time, has no idea about what was being discussed during the earlier meetings, they can refer meeting minutes to improve their knowledge.
They Help Create A Future Action Plan
Corporate minutes drafted during the annual meetings help in guiding your staff to take necessary actions in the future. For example, if the company has decided to expand its business in a new field, then the higher authorities will refer meeting minutes to create a future action plan to achieve such goals.
Generally, meeting minutes are drafted by the company secretary, whenever a meeting is held, but that demands a lot of skills and efforts. In addition to that, there are always chances of human error, when a company secretary drafts meeting minutes. Therefore, tools like MinuteCreator can help in drafting accurate corporate minutes effortlessly.