For most business owners, springtime means filing taxes and working with accountants. Although this is a busy time of year, it is a good idea to dust off your corporate records to make sure that they are accurate and up to date.
One of the main benefits of operating a business through an approved corporate entity is liability protection. Generally, a business owner’s personal assets are shielded by the corporate entity if legal action is taken against the business.
Business owners risk losing liability protection provided by the corporate entity if they fail to engage in corporate governance. Additionally, failing to engage in corporate governance can prevent the sale of a business. The following is a short list of corporate governance practices that are critical to your business.
Six Effective Corporate Governance Practices
- Keeping annual and special meeting minutes
- Properly documenting stock purchases
- Keeping and organizing a corporate minute book
- Keeping updated stock ledgers and certificates
- Keeping accurate and updated by-laws
- Keeping accurate and updated Shareholder Agreements or Members’ Agreements
Pittsburgh Corporate Attorneys
Corporate governance is complicated and can become a very costly endeavor if not handled by a sophisticated corporate lawyer. Engaging a corporate lawyer on an annual basis regarding corporate governance will save business owners time and money. If you would like assistance with your corporate records or have any questions regarding corporate governance, contact Victor Kustra at vkustra@lynchlaw-group.com or 724.776.8000.
