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Board Meeting Information:
Contrary to popular belief the board of directors don’t take the majority of decisions at your company. Although they may have authority in a few areas that have a significant impact (in the case of a venture-backed business such decisions are typically outlined in the governing documents as well as investment documents) However, the majority of the important issues are decided either by committees or the CEO/management with input from the Board.
Board meetings tend to focus on policy, planning and oversight tasks instead of business operations. The decisions of the board could have significant consequences for the company. This is why it’s vital to organize and conduct board meetings that encourage constructive discussion and results.
To ensure that the board is well informed, it is crucial to ensure that everyone is informed. Distribute materials for the board in advance so that the attendees can familiarize them with the information prior to the meeting. These documents should be concise and clear enough to not take longer than an hour to review.
Next, set aside time for the board to discuss. Consider allowing attendees to share short comments or ask questions in an open discussion, and also scheduling time for guest speakers from external stakeholders. Additionally, you should set aside time to have a consent agendathat is, a section of the meeting where routine or non-controversial items can be approved through just a simple motion and a vote.
Also, during board meetings, explain the decision-making procedure. Make a decision on whether you want to reach consensus or use an official voting process and establish specific criteria for evaluating the new ideas. This will help everyone know their part in the process, as well as the possible negative consequences of a decision-making process that has gone wrong.