Is the minutes book necessary to obtain funding?

It may be necessary to review certain corporate documents, without necessarily being submitted to the bank. When a company applies for a loan, line of credit, or other financing, the financial institution may require certain documents or confirmations concerning the company and the individuals authorized to bind it.

Depending on the nature and amount of the funding, it may be necessary to provide, among other things:

• a resolution authorizing the borrowing or financing;
• a resolution concerning the persons authorized to sign;
• certain corporate information or documents;
• a corporate opinion prepared by a notary or lawyer, when required.

The minutes book then plays an important role since it contains the documents and information needed to verify the corporate situation of the company and to prepare the required resolutions or opinions.

When a corporate opinion is requested, the notary or lawyer must generally review the relevant corporate documents before being able to provide the legal confirmations required by the financial institution.

If corporate documentation is incomplete or has not been updated, certain checks or regularizations may be necessary before the documents required for the loan or financing can be prepared.

In summary , the bank does not necessarily require the minutes book itself. However, up-to-date corporate documentation may be necessary to prepare the resolutions, confirmations, or corporate opinion required for financing.