Most business corporation laws require a corporation to keep accurate records and books. With respect to financial and accounting records, this is obvious. However, there is no absolute requirement to prepare written minutes of meetings (minutes are simply a written record of the meeting usually prepared by the corporate secretary), but the following are a few important reasons why it is highly advisable to do so.
- All essential business decisions should be documented in writing. This will help substantiate corporate actions against attacks by the IRS or creditors.
- Minutes help resolve disputes between shareholders or directors of a corporation with respect to actions taken or agreements made.
- Minutes in your corporate records help prove that you comply with corporate formalities.