Board meetings are held regularly and allow the company’s management to meet with key stakeholders to discuss crucial business issues. It is crucial that the board of directors remains in contact and on the same page with each other particularly during times of high stress such as an M&A or even a threat that is imminent. A consistent agenda will ensure that meetings are focused on the most important business issues instead of rehashing outdated information.
The most important part of a board meeting is discussion of the company’s strategic direction. The board should discuss strategies and develop an implementation plan to encourage progress. It is also beneficial to work together on any challenges the company may face and develop a plan to overcome them.
Committee or department heads typically present reports to the board during this part of the meeting. These reports can include milestones, financial information and KPIs, product roadmaps, progress and organizational performance. Often, the bulk of this section is spent reviewing future strategies and assessing whether or not the company is on the right track to achieve its goals.
The board must then go over any old unresolved items or new ones that require formal approval. Depending on the business the board could vote on a range of issues such as changing the company’s articles of incorporation or authorizing certain transactions, or ratifying a prior decision made by the board. It is essential to ensure that a quorum of the members are present to vote on the topic.
