Be It Resolved

January is well underway, and so are our resolutions; some diligently maintained, others already set aside. The intention behind them is usually consistent: improving overall wellness, making better choices, or a life rebalance. Corporate annual resolutions share similar aims, focusing on sound governance, regulatory compliance, and financial accountability.

Whether a corporation has a single director-shareholder or a larger board and shareholder group, annual resolutions are required to approve year-end financial statements, elect or re-appoint directors and then waive, or appoint, an auditor for the ensuing year.

Under the Business Corporations Act, a corporation must have financial statements prepared, and the directors must approve these and then present and disclose these to its shareholders within a short period of time following the fiscal year-end. Shareholders may accept the statements and waive the appointment of an auditor for the ensuing year, or, if dissatisfied, they may require one to be appointed.

This annual process reflects the duty and care exercised by a corporation’s directors and officers.  It is much like conducting a self-audit for over-all well being and balance and then setting corrective goals for personal duty and care each January.

Are you meeting your organization’s annual governance requirements? We are here to assist. Contact our team today to learn more about how our team can help with your corporate due diligence.