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CS Professional · CSR and Social Governance · Model Code for Meetings of Non-Corporate Entities

A partnership firm's partners hold a meeting and pass a decision to admit a new partner. A partner later claims the decision was never taken, as no record exists. What is the main compliance lesson from a model code on meetings?

Decisions must be written up in minutes and preserved, because the signed record is the evidence of what was resolved. Without it, a disputing partner can deny the decision. Record keeping is good practice for non-corporate entities too, not just companies.

  1. AOral decisions are always more reliable than written ones
  2. BOnly court orders can prove a partnership decision
  3. CDecisions of meetings should be recorded in minutes and kept as proof, since absence of a record makes the decision hard to proveCorrect
  4. DRecords are required only for companies, not for partnerships

Explanation

Recording decisions in signed minutes provides proof of what was resolved. Without them disputes arise. Good practice applies to non-corporate entities as well, so the claim that only companies need records is wrong.

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