If you do not have proper minute books, you run the risk of incurring some very severe consequences. These include the following:
a. If you are audited by the CRA, you run the risk of having to pay more taxes than you would have otherwise if you had kept proper records.
b. You may be hit with additional penalties for failure to comply with the law.
c. A prospective buyer of the shares of the corporation will want to review the minute book so it would require more time and effort to go back in time to update the minute book.