Corporate Compliance Scam Comes to North Carolina

corporate compliance services

A vigilant reader in North Carolina received an “Annual Minutes Requirement Statement” from Corporate Compliance Services. We have seen a similar scam in California, Colorado, Florida, Georgia, Indiana, Illinois, Massachusetts, Montana, New York, Ohio, and Texas.

The very official document cites North Carolina General Statute §55-16-01(a) with the requirement that a corporation must keep a permanent record of all meetings of its incorporators, shareholders and board of directors, and all actions taken.

This form does not act as a record of the meetings, but is merely a list of the directors, officers, and shareholders. It does not even meet the requirement of the statute it cites.

North Carolina General Statute §55-16-01(c) requires a corporation to maintain a record of its shareholders in a form that permits preparation of a list of the names and addresses of all shareholders, in alphabetical order by class of shares showing the number and class of shares held by each.

The form provides a list of shareholders and the number of shares, but does not record the class of shares. That appears to make the form defective and would not meet the requirements of the statute.

In fairness to the Compliance Services,  the form and the company’s website both state that they not connected with any government agency.  Throw their form in the garbage and check with your attorney to make sure the proper corporate procedures and record-keeping are in place.

According to a source at the North Carolina Department of Justice, anyone who has lost money to this Raleigh, NC version of the scam is invited to contact Jennifer Pulley of the NC Attorney General’s Consumer Protection Division, tel. 919-716-6000.

See a larger image of the form.