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May 5, 2010 – ISSN# 1545-2646
Are your Documents in Order?
As part of an ongoing effort to stay current with business information, I attend various education forums and meetings. Recently I attended a business forum and one of the topics of discussion focused on business documents.
I was amazed at the situations that were present and how so many of them could have been avoided if leadership simply would have followed through and followed up.
For example, do you have current meeting minutes for your corporation? What do you define as current?
Are your Bylaws, stock certificates, shareholder agreements and other such corporate documents up to date?
So often they are in the file and we have great intention to update them but they never get done. Sometimes in difficult economic times we move such items to the back burner as a means to save a few legal expenses and then sure enough those are the items that create large dollar expenditures due to post problem fixes.
On your trusted advisory council, are your legal resources communicating with your financial resources on common documents?
Many times each of the parties thinks the other is aware of the intentions of the other. The business owner figures they are professionals and do this all the time so it must get done right. – Wrong!
Decisions that impact the legal documents transfer down to many of the other corporation, partner and stockholder papers. The change may very well have been inked and signed off and even registered but the trickle down of the changes never gets followed up on.
Discussions may take place regarding succession plans and financial vehicles to fund such events in the untimely passing of a partner or business leaders. Third party insurance resources are brought into facilitate the instruments but are they in alignment with the corporations papers?
Im not here proposing any level of legal advise. I ended up walking away from the business forum with a less than confident feeling that the documents in my clients were all in order.
Therefore, this week, your call to challenge is to start by capturing the key document titles in a word processing document and then over the course of the next few weeks when you talk with your various trusted advisor you refer to the list and determine where there may be gaps in the package of business documents. When you find one, put the resolution on your to do list and then get it accomplished.
Wondering what other documents might be out of order? give JKL Associates a call 313-527-7945
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945-
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