Keeping board minutes can help to ensure the directors consider their duties when making decisions and are a legal requirement in their own right. All private limited companies are legally required to keep minutes of board meetings. It can help to use a professionally prepared Board minutes template. A board minutes template can be used to record a selection of routine decisions agreed by the board, such as appointing directors, appointing the company secretary, approving the statutory accounts and approving draft documents. Maintaining accurate board minutes also means that the directors' consideration of their legal duties can be properly recorded and kept as evidence. For further information, read Board meeting minutes.
Putting in place a Shareholders' agreement at the start can avoid potential future conflict. The shareholders are not involved in the day-to-day running of the company, but their approval is required for certain matters. Putting in place a Shareholders' agreement formalises the rights and obligations of the shareholders. It can record such things as the procedure at board and shareholder meetings, what type of decisions must have unanimous shareholder approval and the procedure for transferring shares. The agreement may also include provisions on how to resolve disputes (eg referring to an arbitrator) and a buy-out procedure or when a compulsory transfer of shares is required. It can be used between some or all of your company's shareholders as an effective way of ensuring stability and continuity and also covers important issues such as company administration. For further information, read Shareholders' agreements.
When you issue or transfer shares in a company you may need to issue a Share certificate in order to formalise the transfer of ownership. Companies need to issue a share certificate within two months of its formation or the date of the new share transfer or issue. For further information, read Share transfers and issuing new shares.
If your company intends to lend or borrow money for funding purposes, it's vital that you have a professionally written Loan agreement in place to protect your business interests. A loan agreement contains everything needed to protect both parties and comply with the law in the process. It covers repayment details, warranties given by the borrower, obligations and restrictions on the borrower, as well as how to end the loan agreement. For further information, read Loans between companies.
When you appoint directors to a company, it may be necessary to draft a Senior employment contract. This document sets out the duties and role the director has to the company, remuneration and expenses, confidentiality provisions and post-employment restrictions. As directors are usually exposed to more confidential information, it's important to set out these provisions in the senior employment contract. Less senior employees can be given a normal Contract of employment. For further information on post-employment restrictions, read Post-employment restrictions.