Board Meeting Facts

Board Meetings: Facts

Contrary, your board of directors do not make the majority of the decisions for your company. Although they are in charge of certain high-impact aspects (in the case of a venture-backed company most of the decisions are listed in the investment and governance documents) most important issues are taken up by committees or the management team, with the input of the board.

Board meetings are typically more focused on the planning, policy and oversight functions than on business operations. However, the decisions made by a board can have a significant impact on a business. Therefore, it is crucial to plan and conduct the board meetings in a manner that encourages constructive discussion and results.

The first step is making sure all board members are well-informed. Distribute materials for the board prior to the time of the meeting to ensure that the attendees are familiar with the materials prior to the meeting. Ideally, these documents must be clear and concise enough that they don’t require more than an hour to review.

Then, schedule time for discussion in the boardroom. Consider allowing attendees to contribute brief comments or questions in open forum, and scheduling time for guest talks from outside parties. Make time for the consent agenda – the section in which routine or noncontroversial topics can be approved with a simple vote and motion.

Finally, during board meetings Explain the process for making decisions. Decide if the purpose is to achieve consensus or if a formal vote procedure will be used and set clear criteria for evaluating concepts. This will help everyone recognize their role in the process, as well as the possible consequences of a decision-making procedure that went wrong.

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