Board Meeting Facts
Unlike the popular notion, boards of directors don’t make the majority of the decisions for your company. While they may have authority in certain areas of high impact (in the case of a venture-backed business, these decisions are often stated in the governing documents and investment documents), the majority of the important issues are decided by committees or the CEO/management with the assistance of the Board.
Board meetings are typically more focused on the planning, policy and oversight of business operations. The decisions of the board may have an impact on the company. It is therefore crucial to plan and conduct the board meetings in a manner that encourages open discussion and produces results.
To ensure that the board is informed, it’s crucial to ensure everyone is aware. In order to facilitate productive discussions be sure to distribute the materials to board members prior to the meeting so that attendees can learn about them prior to the meeting. Ideally the documents should be clear and concise enough that they don’t need more than an hour for review.
Then, you can allocate time for board discussion. Consider allowing attendees to share brief remarks or queries in an open forum, and scheduling time for guest talks data room provider from external stakeholders. Set aside time for the consent agenda, one section where routine or noncontroversial topics can be ratified with a single vote and motion.
Lastly, communicate the process of decision-making during board meetings. Make a decision on whether you want to reach a consensus or employ an official voting procedure, and establish specific criteria for evaluating new ideas. This will allow everyone to be aware of their roles and the potential consequences of a bad decision.
