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Is Your Minute Book Putting Your Business at Risk? Here's Why It Matters! #shorts

24 Dec 2024 · 1 min

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Short video by Bob Gauvreau explaining that failing to create or maintain an up-to-date corporate minute book is a serious compliance risk. Under the Canada Business Corporations Act (and provincial equivalents) minute books are required and often requested during government audits; they should record AGM minutes, board minutes, acquisitions and major capital contributions and be updated annually. Missing or outdated minute books can call the entity’s validity, the owner’s integrity, and the business’s ability to be sold into question.

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What are some of the greatest risks and errors associated with Minutebooks is either one, Minutebook doesn't exist at all, it was never created, or two, it's not up to date if you don't have one established. It's actually a requirement under the Corporations, the Business Corporations act of Canada and in your province to make sure that these are up to date. If the government is doing any sort of audit, it's going to be one of the first things that they ask for is an up to date minute book. All your resolutions are up to date from all of the historical past and and then you update your Minutebook every single year. Some things that need to be included when your annual general meetings have happened, any minutes of the board of directors, any sort of acquisitions or major capital contributions should be documented within your Minutebook. Should a government agency or you wish to sell your entity that everything is always up to speed because if it's not, it really pulls into question the validity of your business entity. It pulls into question your integrity to a certain extent as well and your legitimacy as a business owner.