Should a Board Keep Incredibly Detailed Minutes?

July 29, 2015 — The minutes of the building I'm looking at are incredibly detailed with quoted exchanges from the meetings and a lot of personality. What should I take away from that?

Minutes should record the actions of the board in a very succinct and businesslike manner. They should not go on for pages and they should not get into all of the scuttlebutt of the building. The minutes should be short, to the point, and leave out all the other "colorful" actions that may go on during the decision-making process by the board.

If you are reading minutes where there are quotations and other peripheral items included that says to me that there's a lot going on in that building and the board isn't together on its decision-making processes. Less is more when it comes to taking minutes and the business of the building should be properly recorded in them.

It is important to remember that the minutes become public record when they are read by outside counsel on behalf of prospective buyers. Therefore, it is important for the minutes to reflect business and business decisions only. Boards should also be aware that there is potential liability in "colorful" minutes.

Timothy Grogan is president of Grogan & Associates.