Corporate (General)

Exercise 2

Board Minutes
(Answer & Tips)

Key Point Checklist

1. Preliminary Essentials
□ Complete company name
□ Date, time, and venue (physical/virtual)
□ Clear identification of meeting type
□ Meeting notice verification
□ Quorum confirmation
□ Virtual meeting technical verification
□ Attendance record (in person/virtual)

2. Attendance Details
□ Directors' full names and capacities
□ Designation of Chairman
□ Clear indication of attendance method
□ Non-director attendees noted
□ Apologies for absence (if any)
□ Recording of late arrivals/early departures
□ Location of virtual attendees

3. Structural Requirements
□ Sequential numbering of paragraphs
□ Clear resolution formatting
□ Consistent tense usage
□ Proper use of defined terms
□ Clear distinction between discussion/decisions
□ Proper cross-referencing
□ Document attachments noted

4. Legal Formalities
□ Declaration of interests
□ Articles compliance noted
□ Regulatory requirements addressed
□ Filing obligations noted
□ Required authorizations included
□ Signing authority specified
□ Companies Ordinance compliance

5. Content Essentials
□ Previous minutes approval
□ Matters arising addressed
□ Clear record of discussions
□ Voting results recorded
□ Dissenting views noted (if any)
□ Clear action items
□ Implementation timelines

6. Corporate Actions
□ Clear resolution wording
□ Financial figures specified
□ Dates and deadlines noted
□ Authority delegations
□ Document execution requirements
□ Implementation responsibilities
□ Required notifications

7. Timing and Sequence
□ Start time recorded
□ End time noted
□ Next meeting scheduled
□ Timeline for actions
□ Filing deadlines noted
□ Payment/record dates (if applicable)
□ Implementation sequence

8. Completion Requirements
□ Chairman's signature block
□ Date of signing
□ Page numbers
□ Initialing of amendments
□ Attachment list
□ Action items summary
□ Document retention requirements

9. Formatting
□ Consistent formatting
□ Spelling and grammar
□ Defined terms consistent
□ Cross-references accurate
□ Names and titles correct
□ Financial figures verified
□ Comprehensive but concise

Model Answer

TECH SOLUTIONS LIMITED

(the "Company")

MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS

HELD ON THURSDAY, 28 NOVEMBER 2024 AT 10:00 A.M.

Venue: Unit 1, 10/F, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong and by video conference

Present:

In person:

Mr. David Wong (Chairman)

Mr. Michael Zhang (Chief Financial Officer)

Mr. Peter Lee (Independent Director)

Ms. Emily Chan (Company Secretary)

Via video conference:

Ms. Sarah Chen (Chief Executive Officer) - from Singapore

Ms. Jane Smith (Independent Director) - from London

1. PRELIMINARY

1.1 The Chairman noted that:

(a) Notice of the meeting had been duly given to all Directors;

(b) A quorum was present in accordance with Article [•] of the Company's Articles of Association; and

(c) The video conference facilities enabled all participants to hear and be heard simultaneously throughout the meeting.

1.2 The Chairman declared the meeting open at 10:00 a.m.

2. DECLARATIONS OF INTEREST

2.1 No Director declared any interest in the matters to be discussed at the meeting.

3. PREVIOUS MINUTES

3.1 The Board reviewed the minutes of the previous meeting held on 30 October 2024.

3.2 IT WAS RESOLVED that the minutes be and are hereby approved and signed by the Chairman as a true record.

4. FINANCIAL MATTERS

4.1 The CFO presented the Q3 Financial Results, highlighting:

(a) Revenue of HK$50 million, representing 20% year-on-year growth;

(b) Current cash position of HK$30 million;

(c) Key contracts secured during Q3 2024.

4.2 The Board discussed the financial performance and noted the positive trajectory.

5. PROPOSED ACQUISITION

5.1 The CFO presented:

(a) Due diligence findings on ABC Software Limited;

(b) Proposed acquisition structure;

(c) Integration timeline and synergy analysis.

5.2 After detailed discussion, IT WAS RESOLVED that:

(a) The acquisition of ABC Software Limited for HK$10 million be and is hereby approved;

(b) Any two Directors be authorized to:

(i) Execute the sale and purchase agreement;

(ii) Make such amendments as they deem appropriate;

(iii) Execute all ancillary documents.

(c) The Company Secretary be authorized to make necessary filings.

6. INTERIM DIVIDEND

6.1 Having considered the Company's financial position, IT WAS RESOLVED that:

(a) An interim dividend of HK$0.50 per share be declared;

(b) The record date shall be 15 December 2024;

(c) Payment shall be made on 5 January 2025;

(d) The Company Secretary arrange necessary announcements.

7. OTHER BUSINESS

7.1 Office Lease

The CEO updated on lease renewal negotiations. The Board authorized management to proceed within the discussed parameters.

8. NEXT MEETING

8.1 The next Board meeting was scheduled for 25 January 2025 at 10:00 a.m.

9. CLOSE

9.1 There being no further business, the Chairman declared the meeting closed at 12:30 p.m.

_______________________

Chairman

Date:

[Notes:

Action items summary attached as Appendix A

CFO's financial presentation attached as Appendix B

Due diligence summary attached as Appendix C]

Common Mistakes

Format and Structure

  • Mixing present and past tense in narration

  • Inconsistent paragraph numbering

  • Missing page numbers on multi-page minutes

  • Informal language or casual expressions

  • Inconsistent use of defined terms

  • Vague or ambiguous references to documents

  • Missing attendance details or wrong designations

Content and Substance

  • Recording verbatim discussions instead of key points

  • Omitting voting results or numbers

  • Unclear or incomplete resolutions

  • Missing quorum confirmation

  • Not recording late arrivals/early departures

  • Incomplete financial figures or dates

  • Missing implementation details

Legal Requirements

  • Inadequate authorization wording

  • Missing declaration of interests section

  • Incorrect filing requirements

  • Wrong signing requirements

  • Missing regulatory compliance notes

  • Inadequate document execution details

  • Incomplete virtual meeting procedures

Technical Details

  • Wrong company details

  • Incorrect director titles or names

  • Missing location for virtual attendees

  • Inconsistent time formats

  • Wrong dates or deadlines

  • Missing attachment references

  • Incomplete signature blocks

Difference between Written Resolution (Exercise 1) and Minutes

  • Minutes:

    • Record of discussions and decisions at a physical/virtual meeting

    • Narrative style documenting the flow of meeting

    • Includes background discussions and context

    • Records attendance, time, venue details

    • Contains non-resolution matters (presentations, updates)

  • Resolutions:

    • Record of decisions only

    • Direct and decisive language

    • No background discussion needed

    • No attendance details (except signatories)

    • Focuses solely on decisions made

Drafting Approach

  • Draft within 48 hours while memory is fresh

  • Use clear, concise language

  • Focus on decisions rather than discussions

  • Record dissenting views diplomatically

  • Include clear action items and deadlines

  • Cross-reference all attached documents

  • Maintain consistent formatting throughout

Legal Protection

  • Include proper authorization wording

  • Note regulatory compliance specifically

  • Record abstentions and conflicts clearly

  • Include necessary reservations or conditions

  • Document key assumptions or dependencies

  • Note professional advice received

  • Include proper delegation limits

Practical Considerations

  • Create standard templates for consistency

  • Use paragraph numbering for easy reference

  • Include clear implementation steps

  • Note specific timelines and deadlines

  • Record document custody requirements

  • Include contact persons for actions

  • Note follow-up requirements

Best Practices

  • Review previous minutes for consistency

  • Double-check all names and titles

  • Verify all financial figures

  • Confirm regulatory requirements

  • Keep sensitive discussions separate

  • Maintain proper document trail

  • Consider confidentiality requirements

Record Keeping

  • Establish proper filing system

  • Maintain signed original

  • Keep supporting documents

  • Record distribution list

  • Note amendment procedures

  • Include document retention requirements

  • Maintain access control records

Professional Tips