There are many advantages to forming a corporation as a separate legal entity to protect your personal assets. However, you will need to operate the entity with corporate procedures to preserve that layer of legal protection. Creating and maintaining records is an important part of following proper corporate formalities. Corporations and LLCs must file Articles of Incorporation or Articles of Organization with the Nevada Secretary of State and maintain all records, minutes, etc., as required by law. One of the key reasons to regularly maintain corporate minutes is to ensure the corporation follows proper and ethical procedures in accordance with your organization’s bylaws.
The timely drafting of corporate minutes is crucial to their credibility. As time passes, the value of the minutes as an accurate and dependable record may weaken. Not taking meeting minutes can lead to more problems for the company and could be costly in terms of time and resources. Corporate meeting minutes represent the exact record of the matters the shareholders and/or board discussed or considered during the meeting. This record is critical evidence in ensuring each member is acting in agreement with the company bylaws.
It is important to be prepared when drafting quality corporate minutes. Considering what to include and exclude can be difficult, however. It is best to seek an experienced corporate attorney if you need assistance with corporate minutes for your Nevada business. A good attorney will be able to identify details that can protect the company and shareholders from legal liability.
