Organizational and Annual Minutes
When an LLC or Corporation is first formed, Organizational Minutes are
required to set the groundwork for the organization and document the acceptance
of the Operating Agreement, members, and directors. If these Minutes are
not created, the organization may be open to challenge later on by creditors.
If a company is successfully challenged, it means that it is deemed not
to exist by the court and thus exposes your personal assets to judgments
based on business debts.
Like Organizational Minutes, most organizations are required to have annual
meetings and record those proceedings in Minutes. This is another corporate
formality that helps protect the corporation and its shareholders (or
LLC and its members) from creditor claims. It also can be a valuable vehicle
for formalizing decisions that have been made during the year and promoting
effective corporate governance.
A lawyer can help prepare Organizational and Annual Minutes, or simply
remind you each year to have and record your Annual Meeting.
If you want to contact Owens and Perkins regarding Organizational or Annual Minutes,