How to Prepare for Board of Directors Meetings
When a company takes on investors and is incorporated as a company, it no longer is run by its founders. The company is governed by an advisory board, whose role is to ensure the success of the company and empower management to make the necessary changes. The board meets regularly to analyze the company’s performance and participate in discussions about strategic issues.
During board meetings directors review the company’s reports to evaluate the current status of financials, operations and management. Discussions include assessing the viability of strategies that can help promote growth. Strategies may involve re-examining current policies, adding new product portfolios, or expanding into different territories. The board may also decide on the appointment and demotion of managers or important employees.
To ensure that discussions are productive Directors of boards should prepare in advance by reviewing the documents prior to the meeting. This helps them focus their attention on the meeting itself. During the meeting, it’s important to limit discussions about reports to brief summaries. This will allow time for discussion of strategic issues. Reports that are longer can be included in the notes of the meeting as background information, or as an appendix.
The board should also spend considerable time discussing pending agenda items, and reading and approving minutes from previous meetings. The board should also be aware of any legal or compliance requirements that could apply to the meeting. This includes keeping an attendance record, recording the resolutions, and making sure that all documents discussed at the meeting are properly documented and archived. These processes ensure transparency, accountability and honesty in the decision-making process.
