Keeping up to date corporate books is especially difficult for new small businesses. In many instances, the amount of documentation required for registering a company or its purpose do not make sense. With everything involved in running a business, keeping a corporate book could mean for many small business owners, an extra burden.
Minutes, regulations, directors and shareholders’ resolutions, share certificates, records, annual reports, etc.; have a purpose:
Why is it important to keep up to date your corporate book?
- Audits – At the time you incorporate and register the business, you solemnly confirm that some of the documents mentioned above are already signed. These documents must be found in the book. Sometimes, certain government agencies, including CRA, can conduct an audit and the corporate book it is a source that can be evaluated.
- Protection for Directors and Shareholders – even if there is only one director and shareholder, the corporate book provides protection by having properly documented all the transactions that have been made within the company.
- Potential Investors – A corporate book and minutes can facilitate an investment process to the company through third parties.
In addition to the above, there are many reasons to keep books always up to date, including the compliance with certain legislation and regulations.
Regardless of the delay you may currently have in your book, it is never too late to update and keep it up to date. In some cases, you required legal advise in order for the minutes to be done according to the correct and sequential procedure.
By: Maria Campos LL.M.
Lawyer and Notary Public
Invicta Law Corporation