Board Meetings: Facts
Contrary to popular belief, a board of directors doesn’t take the majority of business decisions. Although they might have some authority in certain areas that have a significant impact (in the case of a venture-backed company the decisions are usually described in the governing documents as well as investment documents), the majority of the important issues are decided through committees or by the CEO/management with the input of the Board.
Board meetings are typically more focused on policy, planning and oversight duties than business operations. The decisions of a board can have significant consequences for the company. Therefore, it is crucial to plan and conduct board meetings in a manner that encourages open discussion and produces results.
To ensure that the board is informed, it is crucial to ensure that everyone is informed. To foster productive conversations ensure that the board materials are distributed in advance, so that attendees are able to get familiar with them prior to the meeting. Ideally the documents should be concise and clear enough that they won’t take more than an hour to review.
Next, schedule time for the board to discuss. You might want to give attendees the chance to ask questions or offer brief remarks in an open forum. Also, set boardroomideas.info/nominee-director-definition-with-examples aside time for presentations from external stakeholders. Additionally, you should set aside time to have a consent agendathat is, a section of the meeting in which routine or non-controversial topics can be approved by a simple motion and vote.
Lastly, communicate the process of making decisions during board meetings. Determine whether the objective is to reach a consensus or employ an official voting procedure, and establish specific criteria for evaluating new ideas. This will enable everyone to know their part in the process, and the potential effects of a decision making process that goes wrong.