Best Practices for Board of Directors Meetings
Meetings of the board of directors are a great way for a company to discuss and debate key strategic decisions. The meetings are an important aspect of the governance of an organization, since they establish the basis for future success and efficiency. If you follow a set of best practices and guidelines, you can ensure the agenda of your board is well-defined and productive, which will lead to productive conversations that support the growth of your organization.
A well-run board meeting begins by clearly defining the goals of the meeting, and ensuring that all the necessary legal issues are taken into consideration. This includes provisions within documents governing governance that limit the participation and attendance of members who have opposing or conflicting claims as well as the rules for those who have observer status.
Discussion of business-related issues is an essential part of any board meeting, such as reviewing and approving financial reports and discussing major policy issues. The agenda should include time for the board members to reflect on their current performance and how they can improve.
Inadequate preparation and poor communication can result in a haphazard agenda and a disjointed meeting that doesn’t address the business’s fundamental needs. A well-planned agenda and clear minutes will minimize the possibility of miscommunications and disputes, and ensure that all decisions are taken in a legally-sound and informed way. Additionally the board should be careful not to getting distracted by new discussion topics that are not on the agenda’s top list of items by creating an “parking lot” for these topics at the end of the agenda.
