Why Your Company Needs a Minute Book

By Randall Orser | Small Business

When you decide to incorporate your company there are many things that you need to do, but one of the most important tasks is setting up a Minute Book.   The business registry does not require you to set one up but as a business owner you are responsible for creating one and updating it annually or if there are changes to the company for example in shareholder information.  With the right amount of information, creating a Minute Book is not such an intimidating task. 

Your Minute Book is comprised of important company documents including:

  • Your articles of incorporation
  • Minutes of shareholder/director meetings
  • Annual filings /Financial Statements
  • By-laws
  • If you are selling your company a potential buyer will want to see your Minute Book
  • If you are transferring ownership, a Minute Book is necessary to prove your ownership of the company.
  • If you want to apply for a bank loan they will want to see your Minute Book
  • If you want to purchase property, you will have to provide your Minute Book before the transaction can be completed.
  • Potential investors will want to see your Minute Book to help them decide if they want to invest in your company.
  • In a partnership the Minute Book will keep a record of how much of the company is owned by each partner and any major decisions that have been made. This protects you if there is ever a dispute between the partners or if one wants to dissolve the partnership.
  • Your accountant will require your Minute Book in order to correctly prepare your Tax Returns.
  • Government agencies will request your Minute Book for information and will inflict penalties if you are unable to produce one.  

It is always best to have your Minute Book already prepared to meet any of these situations.  If you rush to put one together you can miss important information or put inaccurate information into the Minute Book, which could cost your company money.  For more information visit:

https://www.canadianbusinessresources.ca/what-goes-in-a-minute-book/

 

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About the Author

President/CEO Number Crunchers® Accounting Inc. Learn how to just say stuff it to this bookkeeping thing with our 'Just Say: "Stuff It" To Bookkeeping program.