Is Your Minute Book Up-to-Date?

Incorporated businesses have to maintain a minute book.

This document which is at least a binder, contains all of the shareholder and director resolutions. If your business was incorporated years ago you may have a fancier book. It is also possible that your minute book is at your lawyer’s office.

This book does not sound all that interesting until you think about dividends. When you take money out of your business as a dividend, technically the board has declared a dividend payable to the shareholders. The board and the shareholders may be just you!

These director’s resolutions are inside the minute book. If you are ever audited by CRA they will be very interested if you have declared dividends but have not documented this fact in your minute book. In fact, they may change your dividends into salary in the absence of a dividend declaration.

The resolutions in your minute book are a legal document, if you feel that your minute book is not up-to-date then you will want to talk to your lawyer.

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Painless Financial Training Group Inc. with Debi Peverill

Understand Financial Stuff, Painlessly