Board of directors meetings, no matter if you are the CEO of a well-established company or a new startup, are crucial for the governance of your organization. They’re a great way to encourage open and transparent communication as well as legal compliance, as well as the basis for collective decisions. The chair of the board is accountable for setting agendas for meetings and quorum. Board members must be well-prepared to discuss the most important issues and document their discussions.
Board members present ideas for future strategies for growth including new products or expansions into new markets. They then discuss the strategies and how they will be measured, weighing up the pros and cons. Eventually, the board may decide to adopt a particular strategy and formulate an action plan to implement it within a given timeframe.
The board also talks about issues and opportunities. This might include evaluating the performance of a particular quarter and determining where things were not working or how to do better next time. It may also cover possible investments or business opportunities that the board believes are worth considering, including risks, costs and benefits of each.
The board will then take a vote on any resolutions or procedural motions, including amending the articles of incorporation, approving certain transactions, or ratifying decisions taken by the board in the past. The board can make any necessary changes to the personnel or invite observers (accredited investors and other individuals with relevant industry knowledge who are invited to participate but not vote) to the meeting. It is crucial that your board members are aware of the purpose and procedure of the company in order to be able to conduct themselves in a professional manner during meetings.
