Board Meeting Facts

Board Meeting Facts

Contrary to popular belief, your board of directors do not make the majority of decisions for your company. They are, however, able to make decisions on certain high-impact aspects (in a venture-backed company the majority of these choices are described in the investment and governing documents) most important issues are decided by committees or the management team and CEO, with the input of the board.

Board meetings tend to focus on planning, policy and oversight tasks rather than business operations. The decisions made by an executive board can have significant consequences for the company. This is the reason it’s essential to organize and conduct board meetings that encourage constructive discussion and results.

The first step is making sure all board members are aware. Distribute materials for the board ahead of time to ensure that the attendees are familiar them with the material before the meeting. The documents should be brief and clear enough to not take longer than an hour to review.

Next, allocate time for discussion on the board. It is possible to allow attendees to share brief remarks or questions in an open forums, and arranging time for guest talks from outside parties. Finally, set aside time for a consent agenda — a section of the meeting in which routine or non-controversial items can be blog here approved with an easy motion and vote.

Last but not least, share the decision-making process at board meetings. Make a decision on whether you want to reach a consensus or utilize an official voting process and set specific criteria for evaluating the new ideas. This will enable everyone to be aware of their roles and the potential consequences of a bad decision.