In brief – Board min­utes can serve as cru­cial evidence

Hav­ing accu­rate min­utes is not just a for­mal­i­ty required under the cor­po­ra­tions law. Detailed min­utes may serve as the cru­cial evi­dence required to defend a direc­tor from charges of breach­ing of his or her duties, includ­ing charges of trad­ing while insolvent.


Def­i­n­i­tion and pur­pose of board minutes

A signed and record­ed minute is evi­dence of a pro­ceed­ing, res­o­lu­tion or dec­la­ra­tion to which the minute relates. Accu­rate board min­utes are an impor­tant resource for man­ag­ing the com­pa­ny and sup­port sound risk man­age­ment by pro­vid­ing a writ­ten record of board delib­er­a­tions and decisions. 

Board min­utes pro­vide evi­dence that a board has exer­cised care in deci­sion mak­ing. They also sub­stan­ti­ate that a board is oper­at­ing in accor­dance with legal require­ments, includ­ing the com­pa­ny’s con­sti­tu­tion and the reg­u­la­to­ry requirements.

Board min­utes assist in the man­age­ment of the company

Beyond being a legal pro­tec­tion, board min­utes also serve an impor­tant man­age­ment func­tion. Accu­rate min­utes are required in order to:

  • Con­firm any deci­sions made
  • Record any agreed actions to be taken
  • Record who has been allo­cat­ed any tasks or responsibilities
  • Prompt action from any rel­e­vant attendees
  • Pro­vide details of the meet­ing to any­one unable to attend
  • Serve as a record of the meet­ing’s pro­ce­dure and outcome
Com­pli­ance not universal

Despite the impor­tance of board min­utes, many com­pa­nies con­tin­ue to make inad­e­quate records of board meet­ings. This is regret­table because by neglect­ing this sim­ple task, direc­tors are depriv­ing them­selves of an impor­tant legal safeguard. 

In the event of legal action being tak­en against the com­pa­ny, min­utes of meet­ings can be used to prove that the direc­tors have tak­en all rea­son­able steps to act respon­si­bly, com­ply with legal require­ments and mit­i­gate risk. 

For fur­ther infor­ma­tion, please contact:

If you would like to repub­lish this arti­cle, it is gen­er­al­ly approved, but pri­or to doing so please con­tact the Mar­ket­ing team at marketing@​swaab.​com.​au. This arti­cle is not legal advice and the views and com­ments are of a gen­er­al nature only. This arti­cle is not to be relied upon in sub­sti­tu­tion for detailed legal advice.

Publications

Dis­missal for Dissent?

The recent unfair dis­missal deci­sion of the Fair Work Com­mis­sion, Shaun Turn­er v Dare­bin City Coun­cil [2025] FWC 1763, in which Deputy…

Con­struc­tion con­tract time­frames and their inter­ac­tion with the NSW Secu­ri­ty of Pay­ment legislation.

Mark Glynn, Con­struc­tion Part­ner at Swaab con­sid­ers the recent deci­sion of Shar­vain Facades Pty Ltd (Admin­is­tra­tors Appoint­ed) v Roberts Co (NSW)…

10 Tips For Stra­ta Reme­di­al Con­struc­tion Contracts

Are you won­der­ing why your stra­ta work to repair or main­tain your stra­ta build­ing is over bud­get, rid­dled with delays…

In the News

Press Release | New Senior Asso­ciate Appoint­ment — Joshua Bernie

With more than 10 years’ expe­ri­ence in stra­ta and con­struc­tion dis­pute res­o­lu­tion across Aus­tralia and the UK, Joshua brings with him…

Press Release | We are pleased to announce five senior pro­mo­tions in key prac­tice areas of the firm effec­tive, 1 July 2025

Con­grat­u­la­tions:Maris­sa Arag­o­na — AssociateRamesh Chamala — AssociateAaron Boz — AssociateWilliam Clement — Senior AssociateKel­lie Van Mun­ster — Spe­cial Counsel “I am per­son­al­ly delight­ed…

Michael Byrnes quot­ed in the arti­cle, “‘Creep­ing’ unfair dis­missal thresh­old will increase to $183k on 1 July”, pub­lished in HR Leader on 27 June 2025

Michael Byrnes quot­ed in the arti­cle, “‘Creep­ing’ unfair dis­missal thresh­old will increase to $183k on 1 July”, pub­lished in HR Leader…

Sign up for our Newsletter

*Mandatory information