Legal Entity Management
Legal entity management is really risk management. It refers to a set of tools and practices to help manage corporate risk. This is vital in the early stages where it is easier to control and get a handle on.
The management includes storing all information, documents, and all other corporate records. This means all ongoing business matters, calendars, reminders and keeping track of what information needs to go where.
Minute Book Management
A minute book is a safe place to keep all corporate records. This is minutes from meetings, register of all the directors, shareholders and officers involved with the corporation. It is necessary to keep these books.
Once, these records were all kept by hand and on paper. Now, technology advancement allows corporations to keep all their minute books information digitally. All forms, notes and certificates can all be entered digitally.
A minute book contains all and any information the corporation needs or uses. Meetings, notices, register of transfers and whatever else is pertinent to your corporation.
More and more, corporations are moving to digital transformation. This is more than just putting documentation on digital files. It encompasses a lot more.
It means all corporations and other associated organizations can access any information they need. By using cloud storage, it not only opens up a great deal of office space, but it also allows the corporation to sort and store all their information.
Much easier to store and access, items deemed personal or sensitive are secured in a password-needed file. Others can be made open for easy access to whoever needs them.
Anytime records need to be updated, they can easily be accessed from anywhere and updated regularly when needed. The entire book doesn’t need to be accessed. Now, you can just access the portion you need to add new notes, add meeting minutes or any news about the board of directors.
Keeping these records is important, not just for your own records and security, but in case anyone ever needs to see past information. This could be:
- An audit
- Getting a loan
- Selling the business
- Allowing your accountant in to file income tax returns
- Sharing decisions made with other shareholders
Any time any legal issue arises, whether small or significant, your minute book will serve as a legal representative for the organization. If you don’t keep these records, there can be penalties, like fines for the corporation and individuals, as well.
This can also cause delays for taxes, or other business matters. If there are legal complications, then that will ultimately cost the corporation time and money. It can mean a lot of headaches for a lot of people, even those who have since moved on.
Minute Book Importance
It’s vital the minute book be kept up-to-date and maintained regularly. It should be done by a lawyer or someone who is in a position of authority and security. It needs to be stored safely and with limited access, to ensure it’s contents are secure.
Putting your minute book on a digital file is a secure way to store it and much easier to maintain and manage. Files can be added, accessed and updated in seconds, so there is never a delay or concern.