A Michigan company that once tried to sell businesses "mandatory labor posters" is now trying to convince companies to fork over $125 to prepare annual corporate minutes, the Better Business Bureau warns.
The BBB has fielded a flurry of inquiries recently about Corporate Records Service, which sent notices to area businesses advising them that they need to have minutes of annual meetings to comply with state laws.
Several states have issued warnings about the notices, and the Wisconsin attorney general filed a complaint against the company in court. The Iowa attorney general obtained an agreement with Corporate Records Service's owner, The Mandatory Poster Agency Inc. of Lansing, Mich., requiring the company to refrain from misleading statements regarding its location or its status as a government entity. The agreement also bars the firm from misrepresenting workplace posting laws and requirements and from implying that its products are somehow mandatory or approved by government agencies.
The Mandatory Poster Agency Inc. has an "F" rating with the BBB, the lowest possible.
The notices are one of several kinds of scams that target businesses. Scammers prey on business owners who aren't knowledgeable about corporate laws or who are too busy to take the time to investigate whether the notice is true. One business owner who called the BBB said she had already written a $125 check before calling the BBB to inquire whether she was really required to have some kind of formal minutes on file.
The BBB advises businesses to scrutinize all notices and invoices carefully to avoid paying anything that your company has not ordered or that is not required by law. It's a good idea to check the BBB website for a BBB Business Review on any company.