Part 2: Mastering Corporate Records Management: Processes & Best Practices

In Part 1, we defined corporate records and underscored their importance. Now, we’ll dive into the practical aspects of corporate records management. As businesses grow, the volume and complexity of these records increase, making effective management crucial. The company secretary, legal operations, governance, and compliance teams act as the keepers of the corporate record, protecting the company’s operations and reputation.

The Four Steps of Corporate Records Management:

Effective corporate records management involves a systematic approach encompassing four key steps:

1. Creation and Capture:
   • Creating essential records and capturing them accurately, whether in physical or electronic format. According to AIIM, the Association for Information and Image Management, efficient capture processes are crucial for effective records management. This includes creating records and ensuring that incoming documents are properly integrated into the system.
2. Classification and Storage:
   • Categorizing records based on content, function, and retention requirements.
   • Organizing them systematically for easy access.  Secure, cloud-based storage is increasingly preferred for global entities due to its scalability and accessibility, as highlighted by experts at Gartner (Gartner Cloud Storage Report).
3. Maintenance and Use:
   • Ensuring records remain usable and up to date over time.
   • Updating records to reflect bylaws, policies, or other relevant information changes.
   • Protecting records from damage or loss.
4. Retention and Disposal:
   • Establishing clear retention schedules for different types of records.
   • Defining procedures for proper disposal once the required retention period has passed. The Information Governance Initiative (IGI) provides resources on establishing compliant retention policies (Information Governance Initiative).

How Long to Keep Corporate Records: A Matter of Regulation

The length of time you need to keep your corporate records depends on the kind of records they are and the regulations governing them. As highlighted in the provided document, corporations keep records for three to seven years, not including permanent records.

The duration corporations must store corporate records typically fall into the following categories:

• Permanent records: Corporations must keep certain documents indefinitely, including Articles of Incorporation, bylaws and amendments, meeting minutes, and more.
• Financial and tax records: Documents in this category must be kept for seven years, ranging from tax returns and supporting documents to bank statements and invoices.
• Employment records: Employment contracts, performance reviews, disciplinary records, and related documents must be kept for seven years after employment ends.
• Legal and contractual records: You should keep these records, including contracts and agreements, leases, and more, for seven years.
• Operational records: Regulations don’t require corporations to hold operational records for over three years, though you must keep some for as long as seven. These records include correspondence, internal reports and project documents.

Consult legal counsel or refer to resources from organizations like ARMA International for specific guidance (ARMA International).

Best Practices for Managing Corporate Records:

• Develop a Records Management Policy: Outline your organization’s approach to records management, defining roles and responsibilities for consistency and defensibility.
• Offer Corporate Records Training: Educate employees on the importance of records management, your organization’s processes, and their specific responsibilities.
• Regularly Review and Update Practices: Ensure your policies remain effective, compliant, and supportive of evolving business needs.
• Use Appropriate Software: Implement entity management software to streamline processes and centralize document management.

The Importance of Centralized Corporate Records

A centralized corporate record system offers a unified repository for storing, managing, and accessing the organization’s documents. Centralization ensures that records are consistent, accurate, and easily accessible. Without it, it’s challenging and often impossible for modern entities to guarantee the integrity of their records. Centralization reduces the chances of multiple versions of the same document, disparate protocols for handling records, or inefficient access to them — thereby maintaining a single source of truth for the entire entity. Modern entity management solutions are designed to help organizations maintain and manage their records more efficiently.

Effective corporate records management is essential for compliance, risk mitigation, and informed decision-making. By following these best practices, organizations can ensure that their records are well-organized, accessible, and strategically valuable.

In Part 3, we’ll explore leveraging corporate records as a strategic asset for governance, compliance, and growth.