Five Types of Board Documents
A board of directors is dependent on several types of documents to fulfill its responsibilities, ranging from legal requirements to internal policies and guidelines. To make the best decisions, boards must have access to comprehensive accurate, precise and concise information.
Having the right board documents is essential for any non-profit to be successful. Without the proper materials, boards can become caught up in administrative work and lose the focus on strategic growth. It’s vital to have these five documents on hand in order to ensure that your board is meeting its fiduciary obligation of accountability.
Board papers are the documents that board members read before and during board meetings. These documents are important because they provide context and background information which helps boards make informed decisions. Board papers should be short, concise and clear. This is the result of three C’s:
Financial Statements
Board members need a summary of the financial health of the company that is simple to comprehend. This will allow them to know what the company has and the amount of cash in the bank, and what expenses have been Deal Room benefits approved by the board. The board should be informed about the company’s finances, so they can ask the right questions during meetings and monitor the CEO’s financial responsibility.
