Board Meeting Facts

Board Meeting Details:

Contrary to popular belief your board of directors do not make the majority of the decisions for your company. While they may have some authority in a few areas with a high impact (in the case of a venture-backed business, these decisions are often defined in the governing documents as well as investment documents), the majority of important decisions are decided either by committees or by the CEO/management with the assistance of the Board.

Board meetings are usually focused on policy, planning and oversight rather than business operations. The decisions of the board could have significant consequences for the business. This is why it’s important to design and organize board meetings to encourage constructive discussions and outcomes.

To ensure that the board is well-informed, it is essential to ensure everyone is aware. Distribute the materials to board members prior to the meeting so that the attendees can familiarize with the materials prior to the meeting. These documents should be short and simple enough to not take more than a half hour to review.

Next, allocate time for board discussion. You might want to give attendees the chance to ask questions and make brief remarks in a public forum. Also, plan time for presentations from external stakeholders. Set aside time for the consent agenda – the section in which routine or noncontroversial topics can be approved with a simple vote and motion.

Last but not least, share the decision-making process during board meetings. Decide if the purpose is to achieve consensus or if a formal vote procedure is required and set clear criteria to evaluate concepts. This will help everyone understand their role and the possible consequences of a bad decision.

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