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Advantage of Having Corporate Minutes

07th February 2011
By Andrei Davis in Law
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It is highly important that all people who would want to start a business in California know the importance of keeping sufficient documentation when it comes to every transactions of the company. Most of the decisions and transactions of the company are discussed during the board meetings. Some companies records every meeting so that they will have adequate evidence of every decision made during the meeting. These meetings are documented in the structure of corporate meeting minutes.

In some states in the United States of America penalized those companies which do not have proper records. Many argue that this may be a cause of problem for the other shareholders of the company where personal and professional relationships intersect with one another. As such, it is only right that all California corporations follow the state and federal laws. This is a responsibility of the company to the state and country. It really does not matter if your company utilizes a small group of employees or a big group of employees. It is better to make proper documentation than face the chance of a lawsuit against your company. Some corporate lawyers will charge a big sum of money by just representing you company in a minimal non-compliance lawsuit.

Some states in America necessitate that all corporations have to hold a yearly shareholder’s meetings so that they can elect the directors of each committee. Most California corporations are also required by the law to hold yearly board meetings. All of these meetings have to have corporate minutes in order to be transparent in all their transactions. These minutes can also be a reflection on the status of the company and future endeavors of the company. The elections will also be included as well as the introduction of new shareholders. All statements that will be found in the minutes should be accurate and not an interpretation of the person transcribing it. This will not be a report of the everyday activities of the company. There are two things that one needs to remember. One is that everything should be presented in the precise manner. Second, one should observe proper grammar. If one follows these advices then one would have good documentation of the company.

Writer wrote this article to provides information to educate the public about Incorporating in California and advantages in having Corporate Minutes.
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