Every corporate entity must hold board meetings and keep corporate minutes. This won’t mean you need to be sucked in by the organization minute preparation solicitations.
Corporate minutes simply are documents detailing the events of a corporate board meeting. Typically, a corporation must have a board meeting every quarter if for no other reason than to force overview of where in fact the business has been and where it really is going. Generally in most states, however, a corporation is necessary to have only 1 annual meeting and keep carefully the minutes of this meeting in the organization book.
Corporate minutes should never be filed with any government entity. The organization minutes are an interior corporate matter and only emerged when there is a shareholder dispute or perhaps a claim by way of a alternative party that the organization is really a sham. Corporate minutes are usually taken through the board meeting by the Secretary, who subsequently files them in the organization book.
America is really a country of entrepreneurs and much more when compared to a few companies have discovered a small business opportunity involving corporate minutes. Typically, these businesses will offer to get ready your corporate minutes for a nominal fee. The solicitation is commonly by means of a mailing having an envelope that looks much like one you’ll receive from the government, however, not so much concerning obtain the solicitor in big trouble with hawaii.
In large and impressive type, the solicitation will remind you that corporate minutes have to be prepared and the business is ready to take action for $100 roughly. In much smaller type on the bottom or back of the page, you will have a disclaimer noting the business isn’t a government entity and so forth.
I don’t possess anything against such companies, but recommend you do not use them. The inner workings of a corporation and board of directors ought to be kept absolutely confidential. Board meeting inherently involve discussions of sensitive matters such as for example business strategies, services, how to approach competitors and financial issues. For me, this information shouldn’t get to any alternative party.
There is nothing wrong or illegal about companies offering to get ready your corporate minutes. It really is just not a great choice.