Board Meeting Facts
Unlike the popular notion, the board of directors don’t take the majority of business decisions. While they may have some authority in a few areas of high impact (in a venture backed company they are typically described in the governing documents as well as investment documents), the majority of important issues are decided either by committees or the CEO/management with the help of the Board.
Board meetings are typically more focused on policies, planning and oversight duties than business operations. The decisions of an executive board can have significant consequences for the business. It’s therefore important to organize and conduct board meetings in a manner that encourages a constructive discussions and produces positive results.
To ensure that the board is well informed, it is essential to ensure everyone is informed. Distribute board materials prior to the meeting to allow attendees to familiarize them with the information prior to the meeting. These documents should be short and clear enough to take no more than an hour for review.
Next, set aside time for discussion at the board. It is possible to allow attendees to share brief remarks or questions in an open forums, and https://boardroomideas.info/what-to-expect-from-data-room-provider/ arranging time for guest talks from outside stakeholders. Additionally, you should set aside time for a consent agenda -an area of the meeting in which routine or non-controversial items may be ratified with the simple motion and vote.
Last but not least, share the process of making decisions during board meetings. Determine whether the objective is to reach a consensus or utilize a formal voting process, and establish clear criteria for evaluating any new ideas. This will allow everyone to be aware of their roles in the process, as well as the possible consequences of a decision-making process that went wrong.