Client Alert: Corporate Diligence - Things to Consider During Troubling Times
In an era of increasing litigation, keeping accurate, detailed corporate minutes is critical. In addition to their standard function of recording and reflecting decisions made by company management and directors and the deliberation of those decisions, corporate minutes can help establish that company directors have met their fiduciary obligations and have executed a sound decision-making process. Conversely, poor minute keeping can result in protracted litigation to determine the care that went into a board's decision to act. It is vital for a company to keep an accurate, precise and complete record of director decision-making and oversight. Furthermore, the failure to maintain such corporate formalities could result in a piercing of the corporate veil action and allow claimants to reach the assets of a company's shareholders. Our Corporate attorneys can assist you in updating your company's books and records.