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Last RightsLiquidating a Company$

Ben S. Branch, Hugh M. Ray, and Robin Russell

Print publication date: 2007

Print ISBN-13: 9780195306989

Published to Oxford Scholarship Online: May 2007

DOI: 10.1093/acprof:oso/9780195306989.001.0001

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(p.260) Appendix 12 Document Retention Policy

(p.260) Appendix 12 Document Retention Policy

Source:
Last Rights
Publisher:
Oxford University Press

Scope

This Policy is applicable to the [_________] Liquidating Trust (hereinafter the “Trust”).

General Objective

The objective of the Trust's Document Retention Policy (the “Retention Policy”) is twofold:

  1.  To maintain complete and accurate records necessary to effectively carry out the Trust's legal and business responsibilities; and

  2.  To do so in the most cost‐effective, efficient, and productive manner.

Accordingly, it is the practice of the Trust to create and retain only those documents which are accurate and essential to its daily business operations. Unless specific federal or state requirements dictate otherwise, all documents are to be retained only during the period of their immediate usefulness, and then appropriately disposed of in accordance with this Policy.

Specific Goals

By establishing a systematic and accessible procedure for maintaining only those documents necessary to conduct the Trustee's business, this Policy is intended to accomplish the following specific goals:

  1.  to ensure clear and concise Trust records which accurately reflect the Trust's business and ethical practices;

  2. (p.261)
  3.  to avoid unnecessary and costly duplication, and the onerous expense of storing irrelevant and obsolete documents;

  4.  to increase productivity by eliminating redundant circulation of business information;

  5.  to ensure proper identification and classification of documents in order to preserve their confidentiality and privilege, where appropriate; and

  6.  to streamline each employee's filing system, making it easier to locate truly important and useful documents; most employees should experience a reduction of at least one‐third of their office records through strict adherence to this Policy.

Application

This Policy applies to any documentary material, regardless of physical form, that is generated or received by the Trust in connection with transacting its business. This includes originals, copies, finals, drafts, typed and handwritten documents, and information stored on microfiche or other such mediums.

The procedures and retention periods set forth in this Policy are equally applicable to electronic records. Documents generated and maintained in Trust information systems or equipment (including mainframe, PCs, laptops, or storage tapes or diskettes) are to be reviewed by their custodians on the same

Exhibit A. Record Retention Guidelines Chart

Type of Record

Retention Period

Audit reports

Permanent

Bank deposit slips

6 years*

Bank statements

6 years*

Cancelled checks

3 years*

Expired contracts and leases

6 years*

Corporate stock records and minutes

Permanent

Daily sales records and journals

6 years*

Depreciation schedules

Life of asset, +3 years

Employee records

Period of employment, +3 years

Entertainment records

6 years*

Expense records

6 years**

Financial statements

6 years*

General ledger and journals

6 years*

Inventory records

3 years***

Paid vendor invoices

3 years*

Real estate records

Permanent

Tax and legal correspondence

6 years*

Tax returns and supporting documentation

6 years**

*From the date of the creation of the document

**From the tax return due date or filing date, plus any amended returns; whichever is later 

***Longer if the LIFO method is used

(p.262) periodic basis as all other documentary material to ensure complete compliance with this Policy.

Documents received, generated or maintained by the Trust shall be kept for the periods on the attached Exhibit A for the time periods set forth in Exhibit A. After such time period, the documents shall be destroyed.

Adopted this ____ day of ______________, 20___.

_______________ Liquidating Trust

By:________________________________ 

__________________, Trustee