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

Mehta & Rao Associates, a partnership firm, decides major business matters informally over tea, with nothing recorded. A partner leaves and later disputes what was agreed a year ago. Which governance benefit of formal meeting procedures would most directly have prevented this problem?

Proper recording of proceedings through minutes would have prevented the dispute. Written minutes create evidence of what was decided and promote accountability and transparency, whereas informal unrecorded discussions leave decisions open to conflicting recollections.

  1. AHigher quorum requirements
  2. BProper recording of proceedings through minutes, creating evidence of decisionsCorrect
  3. CCompulsory holding of meetings every week
  4. DShifting decisions to a single managing partner

Explanation

The dispute is about what was decided. Minutes document decisions and give transparency and an evidentiary record. Quorum or frequency would not by themselves prove past decisions, and concentrating power in one partner does not create a record.

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