Board of directors are an excellent opportunity for companies to discuss and debate crucial strategic decisions. The proceedings are a critical aspect of a company’s governance setting the stage for future success and productivity. Adhering to a set of best practices can ensure that the agenda of meetings for the board is focused and effective that leads to productive discussions that support the development of the organization.
A board meeting that is efficient begins with clearly defining its goals and ensuring that all legal issues have been addressed. This includes provisions within governance documents that restrict the attendance and participation of those with competing claims as well as the rules for those who have observer status.
Discussion of the most important business issues is a key element of any board meeting, such as the review and approval of financial reports and discussing major policy issues. The agenda should also include time for the board to think about its current performance and ways it might improve.
Inadequate preparation and poor communication can result in unorganized agendas and a disjointed meeting that fails to address the company’s most important business requirements. A well-crafted agenda for the board and clear minutes can limit the risk of disputes and confusions, while ensuring that every decision taken is informed and legally sound. The board should also avoid getting lost in discussions that are not on the top agenda for the meeting. Instead they should make a “parking area” at the end of their agenda to accommodate these items.
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