Board meetings are scheduled regularly and allow the company’s management to meet with key stakeholders in order to discuss crucial business issues. It is vital that the board of directors stay in contact and on the same page with each other particularly during crucial times like an M&A or an imminent threat. A regular agenda and structure helps to ensure that meetings are focused on the most pressing business issues, rather than rehashing old news.
The most crucial part of the board meeting is discussion of the company’s strategic direction. The board should consider strategies and come up with an execution plan to help the company move forward. It is important to collaborate to identify any obstacles the company might face and come up with a plan to overcome them.
During this part of the meeting, heads of departments or committees will typically present a report to the board. These reports could include milestones, financial data and KPIs, product roadmaps, improvement and organizational performance. This section is typically used to discussing future strategies and evaluating whether the company is on the right track to achieve its goals.
The board will then review any items that have not been resolved or that need formal approval. Depending on the business the board can vote on a wide range of topics such as amending the company’s articles of incorporation or authorizing certain transactions, or ratifying an earlier decision taken by the board. It is essential to ensure that a quorum of members are present to vote on the subject.
