The Importance of Board Meetings
Board meetings are held regularly and allow the company’s management to meet with key stakeholders to discuss crucial business issues. It is essential that the board of directors remains in contact and on the same page with each other particularly during times of high stress like an M&A or an imminent threat. A regular agenda and structure helps to ensure that meetings are focused on the most pressing business issues rather than rehashing the same old news.
The discussion of the strategic direction of the organization is the most crucial part of any board meeting. The board should review the company’s plans and strategies and create a plan of action to ensure progress. It is important to collaborate on the challenges that the business might face and come up with a plan to overcome them.
Department or committee heads will typically provide reports to the board during this part of the meeting. These reports could include milestones, financial data and KPIs and roadmaps for products, as well as improvements and organizational performance. This section is typically devoted to discussing future strategies and evaluating whether the company is on the right path to meet its objectives.
The board should then review any old unresolved items or new ones that require formal approval. Depending on the organization’s needs the board could vote on a variety topics like changing the company’s articles of incorporation or incorporation, authorizing a particular transaction or ratifying an earlier decision taken by the Board. It is essential to make sure that a majority of members are present to vote on the subject.
