A board of directors ‘ meeting is the time when a company’s most influential decision-makers come together to review reports, make decisions and set the vision for how the company will proceed. These decisions can have a massive impact on the company. They can impact everything from the composition of a management team to setting company policy and even approving grant of stock options. This is a crucial moment for the business and will require the collective wisdom of its most influential executives to guide the company through the complex process of decision-making.
The first step is to schedule an appointment time that allows the members to be in sufficient numbers to constitute an majority. It is also essential to avoid conflicts with members with unique perspectives on upcoming issues. Then it’s a matter of preparing a board package that includes all the relevant information, including projections, statistics and financial information for the meeting. Boards can make use of online tools like Google Docs to create their packages, which are collaborative and include a voting system for quick decisions.
The board scrutinizes the minutes of the last meeting at the actual meeting and discuss any new issues that has come up. Directors with potential conflicts of interest are required to disclose their conflicts and exclude themselves from any discussion. After the main points are discussed, any other procedural motions such ratifying the minutes are dealt with and the board can adjourn.
It’s easy to forget that your fellow board members, although influential, are also individuals. They’ll have their own opinions about their strengths and weaknesses. They might not be as intelligent or shrewd as you think, they might get confused or frustrated, and just like everyone else, they’ll be inclined to whine (even the best ones! ).
