Maintaining Corporate Records


Maintaining Corporate Records.

Once a corporation is formed, you need to maintain corporate records, regarding the following documents:

  • Bylaws

  • Corporate minutes

  • Statements of information

  • A stock ledger

  • Financial statements

These documents are mandatory to lawfully run a corporation in California.

The state informs that these businesses hold annual shareholder meetings, regular board of director’s meetings as well as meetings of any existing committees of the board. Furthermore, minutes must be taken for these meetings.

Minutes of the annual shareholder meeting must be created every year. Additionally, these minutes should be updated when certain major corporate actions occur:

Opening a new bank accountGiving a salary increase to a key employee or an officer.

Signing a new lease agreementIn frequent cases, small business owners avoid these corporate formalities for one reason or another. Usually, they feel that they lack the time to do so. Or they assume that because they own a small, closely-held corporation, they don’t really need to keep corporate records. But greedy litigators in a lawsuit will look for any evidence of failure to maintain corporate records. If they do so, you may be pointed to the direction of the alter ego theory. Your corporation will then be invalidated, leaving your personal assets vulnerable.

CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-800-562-0004

Our Business Hours are:

Mon – Friday from 10:00am to 6:00pm Saturday from 10:00am – 2:00pm

When you have legal business questions, Attorney Omar Zambrano is here to help!

Contact us today to schedule your FREE CONSULTATION.

Featured Posts
Recent Posts
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square