Monday, January 6, 2014

A Review Of The Content And Importance Of Minute Books

By Harriett Crosby


The minute books or binder is basically a volume that consists of all the documents that from the history or existence of an associated corporation. The resolutions passed in the meetings of an institution and deliberations that led to the resolutions are all recorded and kept in an orderly fashion. Different laws demand that all incorporated companies ought to maintain an up-to-date record of affairs of each and every organization.

Records of this nature are normally maintained by an institution for its own good and for use by all stake holders of the firm. Since the documents outlining the day to day operations of any firm are usually open to all stakeholders of a firm and even the public at times, it means that they have to be kept at a central location. This location could be the legal address of the institution or what could be referred to as the main offices of every firm.

Some of the items that usually comprise the volumes discussed here include the articles of association, memorandum of association of any organization, details pertaining to the shareholders and so forth. All these are usually kept in an orderly and clear manner to ease access. Apart from these, all the assets of a firm would also be indicated here.

Although the law requires that all corporate associations maintain such company records, this is not the only reason why these should be maintained. The maintenance of such documents greatly eases the management of each organization. This is because any time the company needs to make references; such documents would be easily accessible and available.

Having the above materials at hand would also be important in instances where the company is undergoing a merger. In such cases all records that consists the entire history of this organization would have to come under scrutiny. The process of merging corporations could be quite complicated, especially in circumstances where the firm had been undergoing a financial crisis.

The track record of a working establishment may be of value in instances where a major sale of an entire corporation of its shares is being contemplated. In such cases, a potential buyer would need to be assured of each value of this business . All transactions that may have occurred in the past, which would have an impact on the sale, would also have to be scrutinized.

The period of time that a particular officer of a corporation would spend in combining and keeping safely the documents of all the organizations would usually depend on the size of every firm. Under normal circumstances, larger organizations would require more time to assemble and maintain such important document. In some cases, large firms have had to employ staff to handle such matters.

Staff members of a particular organization are never allowed to go home or any other place for that matter with the minute books of each institution. Such a move would be completely inappropriate and unprofessional. This is because the confidential information contained in such volumes could fall into the wrong hands and this could be a huge blow to the institution. It must therefore be well stored.




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