Board Meeting Information
Contrary to popular belief, the board of directors does not make the majority of decisions for your company. While they have authority for certain high-impact areas (in the case of a venture-backed business most of the decisions are listed in the investment and governing documents) the majority of important decisions are taken up by committees or the CEO/management team with input from the board.
Board meetings are usually focused on planning, policy, and oversight functions and not business operations. However, a board’s decisions can have a significant impact on a business. It boardroomideas.info/nominee-director-definition-with-examples is therefore crucial to plan and conduct board meetings in a manner that encourages constructive discussion and also results.
To ensure that the board is informed, it is essential to ensure everyone is aware. Distribute the materials to board members prior to the meeting to ensure that the attendees are familiar them with the information prior to the meeting. The documents should be brief and clear enough to take no longer than an hour to review.
Then, schedule time for the board to discuss. It is possible to allow attendees to ask questions or make short remarks in an open forum. Also, plan time for presentations from external stakeholders. Make sure you set aside time for a consent agenda -which is a portion of the meeting where routine or non-controversial items can be approved with the simple motion and vote.
Finally, make clear the process of making decisions during board meetings. Determine if the goal is to reach consensus or use an official voting process and set specific criteria for evaluating new ideas. This will help everyone to know their role and the possible consequences of making a mistake.