A Review Of The Content And Importance Of Minute Books

By Harriett Crosby

Minute books are a permanent record or document that contains the resolutions passed by a company at its meeting and the deliberations that followed such resolutions. Every company is by law required to keep a record of all business of the corporation. One important feature that characterizes such documents is that they have to be maintained in an up-to-date fashion.

Documents of this nature produced by and for use by the corporate body are usually accessible to all stakeholders of each firm. The law requires that such records be kept at the main office or headquarters of an institution for use by recognized persons. No official of any body would be right to prevent any stakeholder from accessing such records for any reason at all.

Bound volumes usually contain all legal documents that outline the formation and existence of the company. This is to say that basic features such as the memorandum of association, articles of association and information on shareholders could be found in such records. The information contained here is usually quite detailed, to the extent that one could learn of the entire history of each organization by perusing the volume.

As it was earlier on stated, the law requires that corporations always maintain documents that portray their activities and history. This ought to be a responsibility that every incorporated association maintains and adheres to. The importance of observing this requirement is that the firm in question would have a reference point for future transactions.

An impeccable history of an institution would come in handy during merger transactions. Such moves would usually require that the entire history of each particular organization be analyzed in detail. In this regard, things would be so much easier if such details are available for perusal at the time they are needed.

The track record of a working establishment may be of value in instances where a major sale of an entire corporation of its shares is being contemplated. In such cases, a potential buyer would need to be assured of each value of this business . All transactions that may have occurred in the past, which would have an impact on the sale, would also have to be scrutinized.

The time that would be used to assemble and maintain documents relating to an institution would usually depend largely on the size of every firm and the nature of its business. In many instances however, large corporations usually employ specialists to deal with such matters. The professionalism that would be exercised in maintaining important items of the establishment would guarantee efficiency and transparency.

Another important to keep in mind about the proper maintenance of any company minute books is that such items should never leave the premises of every organization. The information contained in such documents is usually very confidential, essential to the organization in question. To this effect, it would be highly inappropriate for any staff of the organization to go home, for example, with such confidential reports. Information is very sensitive.

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