Wait a minute

Tim Brown: Public Law Division

Companies run with varying degrees of formality.  Some keep perfect leather-bound minute books, while others would be hard-pressed to determine what exactly the Board of Directors decided on a matter more than three months ago. It is easy to forget administration when getting on with the business of life, but it is worth bearing the details in mind.

The new Companies Act requires that resolutions be dated and sequentially numbered.  So, it might make sense to date the resolution and to include an identifying number, such as “Resolution 5/2012”.

The minutes of a meeting are also evidence of what happened at that meeting only when signed by the chairperson of that meeting or by the chairperson of the Board of the next meeting of the Board.

It is worth bearing in mind that the new Companies Act requires that minutes of board meetings be retained for a period of seven years. After the date of the meeting or the date on which each of the resolutions were adopted.

If a fight ever breaks out in your company, the first thing that the attorneys concerned are going to ask for is copies of the minutes.  Make sure that you have done the administration and are ready!

A meeting is an event where minutes are taken and hours are wasted.

– Anonymous