Best Practices for Board of Directors Meetings

Meetings of the board of directors are a great opportunity for companies to discuss and Data Management debate crucial strategic decisions. The proceedings are a critical aspect of an organization’s governance setting the tone for future productivity and success. A strict adherence to a set best practices will ensure that the agenda of meetings for the board is well-organized and efficient which leads to productive discussions that promote the development of the organization.

A board meeting that is successful begins with clearly defining its goals and ensuring that all legal considerations are taken into consideration. This includes provisions in governance documents that limit attendance and participation of those with competing claims as well as requirements for those who have observer status.

Each board meeting should feature an exchange of views on important business issues, like looking over and approving financial statements and discussing major questions of policy. The agenda should include time for board members to consider their current performance and discuss ways they can improve.

Insufficient preparation and inadequate communication can lead to an haphazard meeting with a sloppy agenda that does not address the most important business issues. A carefully crafted board agenda and clear minutes can reduce the chances of disputes or confusion, and ensure that every decision is based on facts and legally sound. The board should avoid getting lost in discussions that aren’t on the top of the top agenda to discuss at the meeting. Instead they should designate a “parking area” at the end of their agenda to accommodate these issues.