Board meetings are held regularly and allow the management of the company to meet with key stakeholders in order to discuss crucial business issues. It is crucial that the board of directors remains in contact and on the same page with each other especially during crucial times like an M&A or an imminent threat. A regular agenda and structure is helpful to ensure that meetings are focused on the most pressing business issues rather than rehashing old news.
The discussion of the strategic direction of the organization is the most crucial part of any board meeting. The board should consider strategies and come up with an execution strategy to ensure progress. It is important to collaborate on any challenges the company might encounter and devise a plan to overcome them.
During this portion of the meeting, the heads of departments or committees usually present a report to the board. These reports may include milestones, financial information and KPIs, product roadmaps, progress and organizational performance. The majority of this section is spent looking at future strategies and evaluating whether or not the company is on track to meet its goals.
The board must then go over any issues that remain unresolved or new ones that require formal approval. Based on the needs of the company the board may decide on a variety of topics like changing a company’s articles or incorporation, authorizing a certain transaction, or ratifying an earlier decision made by the Board. To vote on a particular topic, it is important that a majority of board members are present.
