The 5th item in a Shareholders Meeting

As a Shareholder of a private corporation, you may in certain jurisdictions, decide by way of a resolution not to appoint an auditor. The resolution remains valid until the next annual meeting. The Auditor would be a chartered accountant and is not a director or officer of the corporation.

3 reasons why you need an Auditor.

1. If you want to do business in other states. You generally have to send in an audited statement with your application to work in that state.

2. If you want to sell your business and are looking for potential buyers. The audited statement avoids any clouds of doubt on how well you ran your business. Also questions that potential buyers may have can be deflected to the Auditor.

3. If you want to apply for a loan, or venture capital. Having an audited statement shows that you are willing to be subjected to others asking for paper trails, asking clients and vendors about their balances, reviewing your lawsuits, if any, checking your reconciliations, etc.

A corporation can invite their corporate attorney to be present at the meetings. If the corporation has dissension among its shareholders, this would be a good idea.

Hopefully, after reading the last 5 days worth of blogs, your corporation will have a successful and meaningful next annual meeting.