Board Meeting Facts

Board Meeting Facts

Contrary to popular belief, the board of directors does not take the majority of business decisions. They are, however, able to make decisions on certain high-impact areas (in a venture-backed firm most of the decisions are made in the investment and governing documents) the majority of important decisions are decided by committees or the management team, with the input of the board.

Board meetings tend to be more focused on the plan, policy and oversight tasks than business operations. The decisions made by a board can have an impact on the company. This is why it’s crucial to organize and best site conduct board meetings to encourage constructive discussions and results.

To ensure that the board is well-informed, it is essential to ensure everyone is aware. To facilitate productive discussions make sure to distribute the board’s materials prior to the meeting so that attendees can be familiar with them prior to the meeting. Ideally these documents should be clear and concise enough that they don’t require more than an hour to review.

Next, schedule time for the board to discuss. Make sure that attendees have the opportunity to ask questions or make brief remarks in a public forum. Also, schedule time for presentations from external stakeholders. Make time for the consent agenda – the section in which routine or noncontroversial topics may be ratified with a single motion and vote.

Finally, make clear the process of making decisions during board meetings. Determine whether the objective is to reach a consensus or employ an official voting procedure, and set clear criteria for evaluating any new ideas. This will allow everyone to understand their role and the potential consequences of making a mistake.