Keeping up-to-date Corporate Books are 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 updated for many small business owners is just another burden. Minutes, regulations, directors and shareholders’ resolutions, shares certificate, records, annual reports, etc. – all must be included.
Why is it important to keep the Corporate Book up to date?
- Audits – Since its inception date, the business must prove that certain documents already exist and are signed, and these documents must be found in the Corporate Book. When certain government agencies including CRA require an audit, the Corporate Book 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 with 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, such as 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 may require legal advice in order for the minutes to be done according to the correct and sequential procedure.