What is a Minute Book, and Why Does Your Business Need it in Oakville?
December 22, 2021 | Written by: Sohail Afzal
Business incorporation is the process by which new corporations are formed. Generally, it involves creating a public record creating a corporate business structure that has some of its characteristics and restrictions. Incorporating your business is essential for several reasons, including tax benefits and the protection of personal assets. An additional book called the minute book needs to be created to incorporate your business in Oakville.
What Does A Minute Book Include?
The minute book includes the corporation’s bylaws and corporate resolutions such as electing officers and directors, funding bank accounts, authorizing stock certificates and corporate insurance. Information in a corporate minute book is created during meetings of the board of directors or shareholders or special shareholder meetings called for particular purposes such as an extraordinary resolution. Creating or amending corporate bylaws is also done during meetings recorded in the minutes.
It would help to keep minute books at the registered office to record what has transpired concerning officers, directors, and shareholders. They must remain up to date because they provide information about how you changed the corporation’s structure. A corporation’s bylaws and corporate minute book are public documents. They contain essential information that you should keep confidential such as how much stock each shareholder owns.
Importance of Minute Books
Incorporating a business requires more than just applying for a federal ID number. To create an effective corporate structure, you need to take several actions into account, including:
- Creating a book of minutes documenting who the shareholders and directors of the corporation are;
- Applying for a federal ID number;
- Creating corporate bank accounts; and,
- Registering the corporation to do business locally (such as county and state).
A minute book is crucial to effective corporate record-keeping. The failure to keep accurate and up-to-date minutes can have serious consequences, including personal liability for the shareholders and directors.
How to keep your minute book up to date?
There are a few things you can do to make sure your minute book stays up to date, including:
- Holding regular meetings of the directors and shareholders;
- Recording all decisions made during these meetings in the minutes; and,
- Updating the bylaws as needed.
You should also keep corporate records to include evidence of corporate status, bank accounts, resolutions authorizing the opening of bank accounts, stock issuance forms and minutes documenting shareholder meetings.
A corporate resolution is passed by the board of directors or shareholders, which serves as part of an official record. To date, writing or amending the corporation’s bylaws is considered one of the most common resolutions passed. Bylaws are adopted by boards of directors, whereas shareholders can adopt or amend the bylaws via a vote. Other corporate resolutions include calling shareholder meetings for specific purposes, making major business decisions and electing officers.
If you’re not sure how to create a minute book or keep it up to date, many companies offer corporate minute book services. These companies will help you get your business set up and keep it running smoothly by incorporating your business, creating a corporate minute book, issuing stock certificates and keeping records of meetings. Once you incorporate your business, the next step is to find incorporation companies that offer affordable services, including necessary documentation, which will enable you to start your business right. For more information, you can easily contact us.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.