By law, a corporation is required to maintain certain corporate records at its corporate records address. This information must be made available to persons entitled to access it, which can include shareholders, directors, creditors, and members of the public. In many jurisdictions, the law does not specifically require these records to be kept in physical form, so long as they are readily accessible at the records address and can be reproduced easily for those entitled to view them. Accordingly, in these jurisdictions, a physical minute book is not required.
Having all records stored digitally, can actually save a corporation some hassle and expense, as the corporate records can be easily shared with accountants, bankers, potential purchasers, and others who might require access. Of course care must be taken to keep the information private and secure.
Despite the fact that many jurisdictions don’t require physical minute books, many corporations prefer to have one. They prefer to keep all originally signed records in a central location, including the share certificates for each shareholder. This can prevent things from being lost and can provide a sense of security.
As the use of digital signatures becomes more prevalent, the preference for keeping a physical minute book will likely fade.
Our basic incorporation package includes a physical minute book only. A physical minute book can be added as an optional item. Purchasers of our ALL IN package will receive a physical minute book AND a digital copy of all records within the minute book for convenience and ease of share with other professionals (such as accountants and bankers).
If you’d like more information please contact a business lawyer with Twin River Law LLP.
This article contains general information, NOT LEGAL ADVICE.
If you’d like legal advice from a lawyer, incorporate with us or contact a lawyer with Twin River Law LLP to request a consultation.