Welcome to SALO's Monthly Legal Newsletter. We want to bring you the most news we can in an easy to read one-pager. We'd like to hear your feedback, topics you'd like to see covered, etc.. This month we address - get it in writing / minute books.
Your business’ minute books must be up to date and organized in a way to simplify the work of any bookkeeper, auditor or interested party with authority to review the minute book.
Some information needed in the minute book includes:
Ensure you are fully informed before signing anything.
As much as we want to rely on a handshake and someone’s word when it comes to doing business, time and experience teaches us that is not always successful. The best way to protect yourself from unscrupulous or simply inept business relationships is to get all of your agreements in writing.
This rule does not simply begin and end with formal contracts. Emails are now a vital and incredibly useful way to track and save all correspondence. Also useful is requesting an e-mail receipt.
Having business correspondences in writing creates a useful tool to discover the truth when a miscommunication arises, or if someone is delayed in giving or revoking instructions. Even if you prefer calling customers, clients or business associates, make it a habit to send them an email summarizing everything you spoke about over the phone.
Seek legal counsel in business decisions. Do not rush into a contract. Get independent legal advice. You may want a lawyer to be in charge of your minute book on a regular basis for the routine documents (e.g. Annual Reports).