Why You Need to Keep a Corporate Record Book
Corporate records and proper management of records are vital to protect the company from a charge of neglectful record keeping and losing its corporate status. The articles of incorporation and bylaw forms required by state filings and records retention rules mandate certain record keeping procedures to be followed. Some of the forms of the company required for compliance include certificates of incorporation, bylaw forms, corporate minutes, and company resolutions, all of which should be organized in a corporate record book and/or corporate minutes book. US Legal Forms offers the most updated, state-specific corporate documents and corporate records maintenance packages in Word format to enable the records of an organization to withstand potential scrutiny or auditing.
Corporate Records Maintenance Advantages
The proper retention of company forms is essential to management of records of an organization. A corporate records manager may be appointed to oversee issues in records management. The following are some of the benefits offered by corporate records maintenance:
- Proper management of records is the only way to comply with state laws regarding filing certificates of incorporation, and other corporate requirements, such as minutes for your shareholders, by law forms, company resolutions, etc.
- Corporate record maintenance offers corporate protection to shareholders by following the legal requirements for records maintenance.
- Keeping proper corporate books and records prevents accusations of neglectful record keeping that can cause loss of corporate protection. Such issues in records management can make a shareholder personally liable for corporate debts.
- Records retention, data protection, and proper management of records not only avoids neglectful record keeping charges, it helps a corporation run efficient board meetings. Company resolutions, bylaw forms, minutes of corporation board meetings, notices, and other forms should be kept in a corporate record book. Keeping important forms in a corporate record book or corporate minutes book not only offers data protection, but can assist in running efficient board meetings by having an organized reference book. A corporate record or minutes book can eliminate the need to hunt for documents.
- When you update your corporate records, you validate the authority of the actions taken on behalf of the corporation, should there ever be a future dispute.
- Proper record keeping can provide a crucial defense in later disputes. For example, a corporate minutes form authorizing company resolutions to transfer stock can prove the company complied with obligations to issue notices to shareholders if there's a question in the future.
The records of an organization play an essential role in protecting the personal liability of the shareholders of a corporation. Certain corporate documents like certificates of incorporation, minutes for your shareholders, bylaw forms, and other corporate records are required to be filed with the state or maintained according to the record retention rules of the corporation. Whether your business needs to update your corporate records or create new corporate books and records, US Legal Forms has thousands of state-specific corporate records maintenance packages and forms that are professionally drafted by attorneys.
Corporate Records Maintenance FAQ
What records are important for a records manager to have?
A records manager must have certain essential books and records, such as company resolutions, certificates of incorporation, a ledger to transfer stock, bylaw forms, minutes for your shareholders, and other forms that may be used to update your corporate records. Minutes of corporation meetings can be kept in a corporate minutes book or corporate record book.
Why is management of records so important?
The corporate identity and shield from personal liability provided by it depends upon proper corporate records maintenance. If the records of an organization aren't properly managed, issues in records management can lead to a charge of neglectful record keeping. Data protection should also be implemented as a corporate protection measure. According to state corporate law and corporate bylaws, certain records, such as the articles of incorporation, by law forms, notices, etc., must be created as standard forms for company operations.
Not only is record keeping important for proving the legitimacy of corporate dealings and avoiding personal liability, but making sure you update your corporate records will help run the company in a more efficient manner. Having the corporate protection of proper records maintenance helps to run efficient board meetings and make sure that requirements to issue notices to shareholders and other rules and laws are met.
What is the best way to ensure correct books and records?
It is possible to appoint a records manager who handles issues in records management. You should make sure all corporate documents are kept in a corporate record book. US Legal Forms offers a corporate records maintenance package that includes numerous forms such as template minutes for your shareholders, forms to issue notices, bylaw forms, company resolutions, stock transfer ledger to transfer stock, corporate minutes, and much more.
Where are corporate records kept?
Certificates of incorporation, and any other filed documents should be kept in a corporate record book. Minutes for your shareholders can be kept in a corporate minutes book. Data protection of important forms of company business involves proper records retention. US Legal Forms offers organizers for corporate documents such as a corporate record book and minutes book that may be used to assist with your management of records.
Does a board directors need to worry about neglectful handling?
Yes, board members could lose corporate protection for their corporate acts if neglectful record keeping is found. Issues in records management need to be addressed and records of an organization should be properly managed to avoid losing the corporate shield of protection against personal liability for corporate acts. US Legal Forms offers corporate records maintenance and packages to update your corporate records to help ensure corporate protection.
What are minutes of corporation meetings?
Corporate minutes are the recorded noted of the proceedings at a corporate meeting. They are the corporate documents that record the actions taken on behalf of the corporation and any company resolutions that were passed. Corporate minutes should be kept in a corporate minutes book.