Small-Business Legal Audit Checklist

1. Contracts

¨ yes ¨ no Are all of the company’s important agreements in writing?

¨ yes ¨ no Are there good form contracts in place?

¨ yes ¨ no Do the contracts provide for disputes to be resolved in courts in the city where the company’s principal office is located?

¨ yes ¨ no Is there an attorney’s fees clause in each contract?

¨ yes ¨ no Does the contract say that amendments to the contract may only be made in writing?

¨ yes ¨ no Are there provisions in the company’s standard form contracts regarding limiting the company’s liability?

¨ yes ¨ no Is the company complying with the terms of its contracts and leases?

2. Corporate Minute Book

¨ yes ¨ no Do the Articles of Incorporation provide for sufficient authorized number of shares?

¨ yes ¨ no Is a copy of the Articles in the Minute Book?

¨ yes ¨ no Is a copy of the Bylaws in the Minute Book?

¨ yes ¨ no Are there minutes for all meetings of shareholders?

¨ yes ¨ no ....