Record keeping is a vital function within a business, especially a corporation, but also a Limited Liability Company, a partnership, a for-profit or non-profit business. Transparency is important, especially when it comes to business transactions so your investors are appraised of what is going on in their investment.
Business Record Maintenance
All businesses have some form of record book, called a minute book, which displays a company’s important documents. Among the documents in this book may be the articles of incorporation, all of the materials filed with the Secretary of State where the company is located, their bylaws, their partnership or operating agreements, their voting records and the company’s annual filings.
The minute book, historically was a physical book like a three-ring binder, used as a reference for attorneys or officers of the company when needed. These records were usually maintained by the Secretary of a corporation
Another important part of a minute book is the summary sheet. There is a similar index at Business Name. The summary sheet is usually the first page of the book and it lists all of the contents of the book, as well as the biographical data of the company. Just as some of the documentation within the record book will be different depending on the business entity type, the summary sheet will also be slightly different for each type of business entity.
The summary sheet will typically list the company’s name, the date it was formed, the purposes of the business, its federal identification number, the resident agent’s name and address and the end of the fiscal year. If the business is a corporation, then the summary sheet will also list the state and date of incorporation, the authorization and issued stock, as well as the list of the Board of Directors and officers of the corporation.
It is very important that the minute book’s summary sheet is always accurate. If there are additions to the record book or information for the company has changed, the summary sheet should be updated to reflect those changes as well. This will help whoever is looking at the record book note the changes before delving into the documentation.
A company’s record book can be maintained electronically as well as physically, but it always needs to have accurate information within it. The information should always be up-to-date to help make it easier to find information within the book.