Best Practices for Board of Directors Meetings
Board of directors meetings offer an opportunity for a company or non-profit to discuss and debate important decisions. The meetings are an important element of the governance of a company, as they establish the conditions for future success and increase productivity. Following a set of best practices will ensure that the agenda for meetings of the board is organized and efficient which leads to productive discussions that support organizational growth.
An effective board meeting begins by clearly defining the purpose of the meeting and ensuring that all legal requirements are taken into account. This includes the provisions in the governance documents which establish attendance and participation limitations for members who have conflicting interests or adversarial claims as well as the rules for those who are only allowed observer status.
Each board meeting should feature an exchange of views on important business issues, such as the process of reviewing and approving financial statements and addressing major policy issues. The agenda should also include time for the board to review its current performance, and to consider ways it can improve its performance.
Insufficient preparation and inefficient communications can result in a chaotic meeting with an unorganized agenda that isn’t addressing the essential business needs. A well-planned agenda and a clear record of the meeting will help to minimize the chance of misunderstandings and disputes, and ensure that all decisions are taken in a legal and well-informed way. Additionally the board must avoid being distracted by discussions on topics that are not on the meeting’s most pressing agenda by establishing a “parking lot” for these topics at the end of the agenda.
No Comments