Board of Directors meetings is the time when a company’s most influential decision-makers come together to discuss reports, take decisions, and establish the direction for how the company will proceed. These decisions could have a major impact on the business such as determining the management composition, to establishing company policies and even approving stock option grants. This is a crucial moment for the company and demands the collective wisdom of its most influential executives to guide the company through the complexities of decision making.
The first step is deciding on an appointment time which will allow enough members to constitute a Quorum. It is also essential to avoid conflicts with members who have unique views on upcoming issues. It’s then time to prepare a board package that includes all relevant statistics, financial information and projections. Boards can utilize online tools like Google Docs to create their packages, which are collaborative and incorporate a voting system that allows for quick decisions.
The board scrutinizes the minutes of the last meeting at the actual meeting and discusses anything new that has been brought up. Directors with potential conflicts of interest are asked to disclose those and recuse themselves from any discussion. After the main points are discussed, any other procedural motions like ratifying the minutes are dealt with and the board may adjourn.
It’s easy to forget that although your board members are influential, they’re just individuals. They’ll have their own opinions, strengths and weaknesses. They may not be as sharp or shrewd as you think they could be and frustrated, and like everyone else, they’ll be more likely to whine (even the most intelligent ones! ).