Board Meeting Facts
Board Meeting Details
Unlike the popular notion, the board of directors don’t take the majority of decisions for your company. Although they may have authority in certain areas that have a significant impact (in an investment company that is venture-backed such decisions are typically stated in the governing documents and investment documents) The majority of the important issues are decided either by committees or by the CEO/management with the input of the Board.
Board meetings are usually focused on planning, policy and oversight tasks rather than business activities. Nevertheless, a board’s decisions can have a significant impact on a business. This is why it’s crucial to organize and conduct board meetings to encourage constructive discussions and results.
To ensure that the board is well-informed it’s important to make sure everyone is aware. In order to facilitate productive discussions make sure to distribute the board’s materials in advance to allow attendees to be familiar with them prior to the meeting. These documents should be short and clear enough to take no more than a half hour to review.
Next, set aside time for the board to discuss. Consider allowing attendees to contribute brief comments or questions in open forum, and planning time for guest talks from outside stakeholders. Make time for the consent agenda – one section where routine or noncontroversial subjects can be approved with a simple vote and motion.
Also, be sure to communicate the process of decision-making during board meetings. Determine if the goal is to come to a consensus, or use a formal voting process, and establish clear criteria for evaluating new ideas. This will enable everyone to be aware of their roles in the process, as well as the potential consequences of a decision-making procedure that went wrong.
