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If annual minutes are not prepared on a timely basis, the death of a director or shareholder, or the development of litigation initiated by minority shareholders, may make having such annual minutes executed impossible.
Thus, you want to ensure your minute books are up to date and are consistent with your financial statements.
The corporate lawyer informed me that clients often assume that because they have been using a certain trade name and/or logo for an extended period of time, that they automatically have certain exclusive rights with respect to the use of such trade name and/or logo. The lawyer told me you run the risk of “trademark trolls” stealing your name and/or logo.
This issue has both payroll and income tax implications.
Despite the contentiousness of this issue, many corporations operate their businesses without any planning for the substantial contingent liabilities they are accruing.
If you have a keen eye, you will note I said we provide a letter addressed to the client’s lawyer, not that we send the letter to the lawyers directly.