Company binder what should it contain?

Discussion in 'Accounting & Tax' started by Ros, 14th Jul, 2017.

Join Australia's most dynamic and respected property investment community
  1. Ros

    Ros Active Member

    Joined:
    4th Aug, 2016
    Posts:
    43
    Location:
    Melbourne
    Help needed -
    I just received my company binder from my old accountant.
    All it contains is the original paperwork from incorporation and the first 2 years of tax returns.
    None of the meeting minutes I've signed and returned over the years are there or the other financial info, ASIC statements etc.
    I can say that I believe I was given a 'copy to keep' with most things (filed in a box somewhere) so I wasn't sure if I should have expected these to be included.
    I know I've never received a copy of an FBT return (this is on their final invoice even though not required). Is there an FBT copy like a final tax return that I should have received in prior years?
    I know as a director I am responsible for record keeping but as we respectfully assume we're being assisted by our professionals I wasn't sure if I should be expecting more to be contained.

    If so, what could I be missing?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    It shouldn't contain anything. You are probably the director of this company and it is your responsibility to keep this information not an accountant. If you don't have records there could be legal consequences under the corporations act.
     
    Ros and Marg4000 like this.
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    Professionals will do as much as you authorise and pay them to do.

    Unless you specifically contracted and paid for them to keep all company records, it is not their responsibility.
    Marg
     
    Ros and Terry_w like this.
  4. Ros

    Ros Active Member

    Joined:
    4th Aug, 2016
    Posts:
    43
    Location:
    Melbourne
    Thanks Terry.
    I know that's the legal obligation taking on a directorship but I wasn't sure if it was considered standard practice or not for it to also be in the binder because it does contain old ASIC stuff, old minutes of meetings but nothing for the last handful of years.
    It also got me thinking whether there was anything that I hadn't possibly been given copies of, if thats the case, which could get me into trouble.
    And Marg, honestly I can't remember what I contracted them to do as they've been looking after things for quite a long while and I was very young when everything was started.
    I appreciate the replies!
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    There are no standard practices - other than the director keeping company documents. You should never hand over any original documents to accountants or lawyers - only ever give copies if needed.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,555
    Location:
    Sydney
    As we arent Directors we dont keep company binders.

    We support companies by maintaining ASIC records and produce the records that should be signed, updated and filed in the binder. Relevant records include:
    • Minutes and Resolutions made by the company officers
    • Records of decisions by members
    • Directors and Shareholder registers
    • Register of beneficial / non-beneficial rights
    • ASIC Docs ie Corp key
    • Cert of Incorp and other formalities
    • Constitutions
    • Trust deed/s
    • Trustee Resolutions and records of unitholders etc
    • Legal advice and letters of legal services
    etc
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,555
    Location:
    Sydney
    Have you asked for full copies of your files. It should contain all these things. We tend to provide this as we see most (not all) files as the client property. After all you paid for it. Our internal workpapers are generally not included
     
  8. Ros

    Ros Active Member

    Joined:
    4th Aug, 2016
    Posts:
    43
    Location:
    Melbourne
    Thanks Paul.
    I asked for my records as I'm moving on and this is what I received.
    I just assumed, as an example, that as I was signing minutes and returning them each year they would have been in there because what purpose would they have for them? I'll just have to dig out my copies of everything and put them all together.
    Forgive me if I sound naive or silly but I'm just trying to make sure that nothing is overlooked.
    I guess you work on that you're paying someone for their expertise and when you get advice that you find out is incorrect and can have major tax and legal consequences it makes you question everything.