The Importance of Board Meetings
The board meetings are scheduled frequently and allow the management of the company to meet with key stakeholders in order to discuss important business issues. It is crucial that the board of directors stay in contact and on the same page with one another especially during crucial times such as an M&A or a threat to the company’s existence. A consistent agenda will ensure that meetings are focused on the most pressing business issues instead of rehashing outdated information.
The discussion of the organization’s strategic direction is the most important part of any board meeting. The board should discuss the company’s strategies and formulate an action plan to promote progress. It is also helpful to collaborate on any obstacles the company might face and formulate a plan on how to address them.
In this portion of the meeting, head of departments or committees will typically present a report to the board. These reports may include milestones, financial data, KPIs such as product roadmaps, the progress of the organization and its performance. Typically, the majority of this section is spent looking at future strategies and assessing whether the organization is on track to meet its goals.
The board will then have to review any old unresolved items or new items that require formal approval. Depending on the business the board may vote on a variety of subjects such as changing the articles of incorporation of the company as well as authorizing certain transactions or ratifying an earlier decision of the board. To vote on a topic it is necessary that a majority of the board members are present.