Most small business owners keep their own minute books. Whether a small business is maintaining its minute book correctly is another story. Here are a few tips to keep in mind:

1. If you are incorporated, you are required to maintain a minute book. Failure to do so may result in penalties.

2. Record financial items properly. Examples include issuance of a shareholder dividend, providing a shareholder loan, or whether you have an operating or capital lease. In the case of the former, the accounting and tax treatments vary. If you are subject to an audit, a properly maintained minute book would save you a lot of headache (and costs).

3. A properly maintained minute book may solve disputes. Recording key corporate decisions in the minute book is important as it is possible for shareholders to dispute corporate decisions that may not have been recorded properly.

In short, it is important to maintain your minute book properly. At Aarbo Fuldauer LLP, we provide routine annual corporate services to businesses, including acting as your business’ registered office, keeping your minute book, and preparing your Annual Returns. The cost to maintain a minute book is minor compared to the potential costs and headache of not having one properly maintained.

By Christina Dao of Aarbo Fuldauer LLP

If you have a legal issue that you need reviewed by a lawyer, please contact the law office of Aarbo Fuldauer LLP at:

Address: 3rd Floor, 1131 Kensington Road NW, Calgary, AB, T2N 3P4
Phone: (403) 571-5120
Email: [email protected]

Christina Dao
Barrister & Solicitor
www.aflawyers.ca

*The information contained in this blog is not legal advice and should not be relied upon.  If you require specific legal assistance, please contact a lawyer.   At Aarbo Fuldauer LLP, our lawyers have broad experience in many areas of practice.  If you require assistance in an area of law that is outside our area of practice, we can refer you to a suitable colleague.*