Most people who run their own business operate through a corporation or a company as it’s commonly known. A company is a separate legal entity that acts independently. As an entity, it can do things like enter into contracts, own property and sue others.

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A company’s activities are tracked in its minute book. The minute book contains important information including the rules that govern the company, a register of the company’s directors and shareholders and resolutions authorizing the company to take certain actions such as paying dividends or obtaining loans.

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Other than it being legally required, it’s important to have a minute book in order to provide updated records to people who regularly want to see them such as shareholders, buyers and lenders.

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Generally, a minute book is kept at the company’s registered and records office. Due to the sensitive nature of the information, a lawyer usually prepares and keeps the minute book at their office. Having a law firm act as your registered and records office ensures that your minute books are kept up-to-date which can save substantial money when you are thinking of borrowing funds or potentially selling the company. Rectifying an incomplete minute book can also be very expensive.

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If you are thinking of incorporating a new company or would like to prepare a minute book for your existing company, reach out to Aman Bindra at [email protected] or call 604-591-7321 today.

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