S-Corporation or "S-Corp" meeting minutes provide proof to the IRS and company shareholders that a business is functioning legitimately. The minutes serve as a history of the business. They are proof that a corporation is operating a legal entity, and are required in federal and state guidelines that for operating small businesses. The minutes are usually recorded by the secretary of the organization or some other designee. Corporate minutes include the date and names of the participants.
A summary of business growth initiatives, projections and goals is a part of S-Corp minutes requirements. This update provides information on the sales progression and development of the company. It entails the status of major business development discussions and any ideas for expansion. The business's accomplishments and future endeavors are recorded in this section.
For example, a report of $20,000 in sales would notify shareholders of the organization's current position. This can indicate a goal attainment or a need for adjustment. This information determines the status of the business and provides direction towards business growth.
Financial Review and Planning
This section of S-Corp minutes provides an update on the organization's financial plan. This includes the forecast and budget. This section details any conversations regarding major purchases of equipment, businesses or other assets. It also details any funds that are acquired through business transactions and money that has been spent. In addition, the allocation of capital for future investments is recorded in the financial review and planning section. This review keeps each stakeholder aware of where and how the corporation's money is being invested.
Approval of Grants and Minutes
Grants that are being considered for approval must be documented in S-Corp minutes. A list of proposed options is to presented to the stakeholders for review and approval. An outline of option grant proposals are to be discussed and submitted to the board members. In addition to option grant approval, S-Corp minutes must be approved by the stakeholders. In both cases a motion is made by one individual and is seconded by another. The motion has to be unanimously adopted by meeting participants. All these events must be recorded in the meetings minutes.
- old calendar image by Allyson Ricketts from Fotolia.com