There are certain record-keeping requirements when you have a business that are mandated by the Corporations Act 2001.
If you don’t comply with these record-keeping requirements you can be fined by ASIC and it can also lead to potential disputes between those who have invested in the business down the track.
In addition, when capital is being raised for your business, investors will want to look at the books and documents related to the company. So many of these documents will be required in order to raise additional capital.
Important secretarial documents include:
- Share certificates
- Board resolutions
- Application and transfer forms
Share Certificates
A share certificate is a document that is issued by a company to a person who acquires shares in that company. Share certificates detail all of the information about the shares and serve as legal proof of ownership. Share certificates have the full name and address of the shareholder, the number of shares held, class of shares, the amount paid per share, and any amount that has not been paid at the date of issuance.
Within 2-months of issuing shares, a company is required to issue share certificates. It must also notify the Australian Securities and Investment Commission within 28 days.
Board Resolutions
Resolutions are a formal notation of decision made by company board members. Decisions which affect the company need a resolution. Resolutions are passed at meetings convened and satisfied by a minimum number of attendees. It’s put into records within 1 month of the meeting.
And the minutes that detail the resolution must be signed by the chair.
ASIC details out several other steps required in order to successfully keep records for Board Resolutions.
Application and Transfer Forms
Application forms include documents pertaining to the applications involved in beginning the business such as company structure, business name, and business number. Transfer forms include those forms that detail out any transfer of ownership to your business.