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 key business issues. It is crucial that the board of director’s remain in touch and on the same page, particularly when critical events occur, such as an M&A deal or a threat to the company’s existence. A regularly scheduled agenda ensures that meetings are focused on the most important business issues instead of rehashing old information.
The most important aspect of a board meeting is the discussion of the company’s strategy direction. The board must discuss strategies and determine an execution plan to encourage progress. It is important to collaborate on the challenges that the business may face and develop plans to overcome them.
During this part of the meeting, the heads of departments or committees typically submit a report to the board. These reports can include milestones, financial data, KPIs as well as product roadmaps, progress and organizational performance. This section is typically used to discussing future strategies and evaluating if the organization is on the right course to achieve its goals.
The board will then review any items that have not been resolved or need formal approval. Depending on the organization’s needs the board can vote on various topics like changing the articles of a company’s incorporation, authorizing a particular transaction or ratifying an earlier decision taken by the Board. To be able to vote on a subject, it is important that a majority of the board members are present.