Question

Answer in brief.

State the importance of Minutes.

Answer 1

1. Authentic Record: The minutes make official record of business transacted, decisions taken and resolutions passed in each meeting. Thus, minutes are the most official and authentic record of the individual opinions and views of the members taking part in the discussions.
2. Evidence: In a court of law, minutes can be produced as a legal evidence of the proceedings of a meeting. Its importance and utility are well understood and recognised in the court of law.
3. Record for future reference : Since minutes are a permanent record. They remove the difficulty of memorising the decisions and resolutions passed in the meeting. The minutes are useful to the top management for taking managerial decisions.
4. Legal provisions: Section 118 and 119 of the Companies Act, 2013, has made it compulsory for all the companies to keep the minutes of the company meetings. Hence, the main objective of keeping minutes is to fulfil this statutory requirement.
5. Information to absent members : Members who remain absent at the meeting can get a complete idea of the proceedings of the meeting from its minutes.
6. Information about resolution : The discussion on the motion is reflected in the resolution. Sometimes, the details and intricacies in oral discussions at the meetings may not be fully understood in the right sense. But when the minutes are finalized and ready. One can go through the same carefully and understand the Implications of the decisions taken.
7. Inspection of Minutes (Section 119): As per the provisions made in Section 119 of the Companies Act, 2013, every company is required to keep its minute’s book at its registered office. Every member has right to inspect the minutes book of the general meetings.