Board Meeting Facts
Board Meeting Information
Contrary to popular belief the board of directors does not make the majority of decisions for your company. Although they may have authority in certain areas of significant importance (in an investment company that is venture-backed such decisions are typically defined in the governing documents and investment documents) however, the majority of the important issues are decided by committees or by the CEO/management with the input of the Board.
Board meetings usually focus on planning, policy, and oversight functions rather than business activities. Nevertheless, a board’s decisions can have a significant impact on the company. Therefore, it is crucial to plan and run the board meetings in a manner that encourages open discussion and also results.
The first step is making sure that all board members are aware. Distribute the board’s materials in advance so that the attendees can familiarize them with the information prior to the meeting. Ideally these documents should be concise and clear enough that they don’t require more than an hour of review.
Next, set aside time for board discussion. Consider allowing attendees the opportunity to ask questions and make brief remarks in an open forum. Also, set aside time for presentations from external stakeholders. Also, make time for a consent agenda- a section of the meeting where routine or non-controversial items may be approved with just a simple motion and a vote.
Lastly, communicate the decision-making process during board meetings. Determine whether the objective is to reach a consensus or employ the formal voting process and establish specific criteria for evaluating the new ideas. This will allow everyone to understand their role in the process, as well as the potential consequences of a decision-making process that went wrong.
