Annual Minutes - Are They Worth It? YES.
By: Joe Leo
As we head into the end of the year, you are likely being bombarded with reminders of house-cleaning items you should address before the calendar turns over. Reviewing your insurance coverage, evaluating your healthcare options for next year, reviewing your retirement accounts, and scheduling time with your tax preparer are all important, and tedious, tasks that need to be addressed. One of those tedious tasks that should not be overlooked is preparing and signing annual shareholder/member and board minutes for your company. Annually maintaining your organization’s records is just as important as filing your Biennial Report every other year. Organizational records are not just good corporate hygiene, they are essential for maintaining liability protection between you and your company. They also show your investors, bankers, and potential acquirers that you are paying attention to the details.
Annual Minutes are a simple and concise way of recording material events that occurred over the past year. Annual Minutes will list the time and place of your annual meeting (and also remind you to have an annual meeting), any changes to owners, officers or board members for your company, and other important decisions that the company has made that may not have otherwise been captured in your company’s corporate records. Having Annual Minutes drafted can help to eliminate future disagreements. Annual Minutes are an easy way to stay in front of possible issues and making sure all owners are in agreement can often save headaches down the road. Once the minutes are completed, the minutes will stay with your company’s organizational documents, just waiting in case you need them in the future.
Please reach out to Joe Leo, or one of BrownWinick’s business transactional attorneys, if you would like to discuss your corporate records. If necessary, someone from the business transactional team could complete a corporate audit which will include finding, organizing, drafting, and storing all your organizational records to efficiently maintain them in the future.