Board Meeting Facts

Contrary to what many believe, the board of directors does not take the majority of business decisions. While they may have some authority in certain areas of significant importance (in the case of a venture-backed business the decisions are usually outlined in the governing documents as well as investment documents) The majority of the important issues are decided by committees or by the CEO/management with the input of the Board.

The majority of board meetings are focused on planning, policy, and oversight functions and not business operations. However, the decisions of a board can have a significant impact on a business. It’s therefore important to organize and conduct board meetings in a way that encourages constructive discussions and produces positive results.

The first step is to make sure that all board members are aware. Distribute the board’s materials prior to the time of the meeting so that attendees can familiarize them with the material prior to the meeting. These documents should be short and simple enough to not take more than an hour for review.

Then, you can allocate time for board discussion. You might want to consider allowing attendees to submit brief comments or questions in open forum, and scheduling time for guest presentations from outside stakeholders. Finally, set aside time to have a consent agenda- a section of the meeting where routine or non-controversial items can be approved by an easy motion and vote.

In the final meeting of the board boardroomideas.info/what-is-reasonable-notice-for-a-board-meeting/ Explain the process for making decisions. Decide if the purpose is to reach consensus or if a formal vote procedure is required and establish clear guidelines for evaluating concepts. This will enable everyone to know their role and the possible consequences of making a mistake.

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