Keeping minutes for a limited company

dixie_dean_2

Hi

I know we are legally required to keep minutes but the company is very informally run by my friend and me, both directors with 50% shares. What is the minimum requirement and is their a set format?

Thanks in advance
Bob

greyteam1959

10 seconds on Google brought this up......
http://www.feld.com/wp/archives/2006/10/sample-board-meeting-minutes.html
HTH

antrobus

dixie_dean wrote: »

...I know we are legally required to keep minutes but the company is very informally run by my friend and me, both directors with 50% shares. What is the minimum requirement ....

To have at least one meeting to approve the annual accounts for submission to CH and HMRC

dixie_dean wrote: »

....and is their a set format?

There are plenty of templates about on the web.

Or you could just not bother with them at all. I know that is not good advice, since it is a legal requirement to keep minutes of all meetings of the directors, and you would be commiting an offence by not keeping minutes. But as far as most private companies are concerned, no one really cares any more, and the chances of something bad happening to you because you can't produce some minutes is very small.

dixie_dean_2

Thanks, that's kind of what I thought. Presumably we could always knock up some minutes retrospectively if ever requested but certainly at the moment I dont think anyone will ask for them as turnover is very small.

Pennywise

dixie_dean wrote: »

Thanks, that's kind of what I thought. Presumably we could always knock up some minutes retrospectively if ever requested but certainly at the moment I dont think anyone will ask for them as turnover is very small.

Not a good idea. What happens, (if as happened to one of my clients), a director/shareholder dies - then it's impossible to get the paperwork signed retrospectively. What happens if you have a major fall-out and a director/shareholder refuses to sign out of spite?

Considering it takes just a minute or two to edit, print and sign a simple A4 sheet of paper, why not just do it and avoid any worry or potential problems in the future.

dixie_dean_2

Good point. So technically, the min requirement would be for us to get this done for past years for one meeting where we apprived the accounts? We are yet to take any money but will soon be drawing some dividends and I know we'd need minutes for their approval too so will sort. Cheers.

dixie_dean_2

Ok, I've found a template and I'm assuming the exact format is not totally prescribed. Just one - probably stupid - question: the form has space for a "chairman" to sign. Do we have to have a chairman? We're both directors and that's it as far as I know. Do we need to nominate a chairman (and a secretary?).

CKhalvashi

Our minutes consist of 'We approve the accounts, we're paying ourselves £x', signed, dated.

They don't need to be anything amazing.

CK

dixie_dean_2

Ah great, thanks very much. That's more or less what we're going with. Do you pay yourself dividends as we will be and I think minutes are needed for that too.

Lomast

CKhalvashi wrote: »

Our minutes consist of 'We approve the accounts, we're paying ourselves £x', signed, dated.

They don't need to be anything amazing.

CK

We are the same as above

99% of our minutes are on an A4 piece of paper stating
Date
Location
People present & role
What was agreed
Signed by those present.

looking back at the last 4 years we have minutes for
Approval of accounts x3 (last years still with accountant)
Agreement of company to buy out a minority shareholder
Agreement to sign a bank mandate (Loans & Overdraft) x6 these were provided to us by HSBC with the loan/overdraft so just added a copy to the minute book (Ring binder)

You don't need to get silly recording who said what when etc, i would however suggest that if the meeting is more substantial then more detailed minutes may be a good idea.

nickj_2

you need to have minutes for any dividends payed and a dividend tax credit form as well . and a agm with minutes as well