Meetings of the board of directors are a great way for a company to discuss and debate key strategic decisions. The meetings are an essential element of an organization’s management setting the tone for future success and productivity. Following a set of best practices can ensure that the agenda for board meetings is well-organized and effective and leads to productive discussions that promote organizational growth.
A productive board meeting begins with clearly defining the objectives of the meeting and making sure that all the necessary legal considerations are addressed. This includes the provisions in the governance documents that define restrictions on participation and attendance for members with conflicts of interest or claims against each other as well as the rules for those who are only allowed observer status.
Every board meeting should include an exchange of views on important business issues, like the process of reviewing and approving financial statements as well as discussing important policy issues. The agenda should also contain time for the board to review its current performance and how it could improve its performance.
Insufficient preparation and inefficient communication could result in unorganized agendas and an unorganized meeting that is not addressing the core business needs of the organization. A carefully crafted board agenda my company and clear minutes can reduce the likelihood of disputes or misunderstandings, ensuring that each decision taken is informed and legally sound. In addition, the board should avoid being distracted by discussions on issues that aren’t on the agenda’s most important list of items by creating an “parking lot” for these items at the end of the agenda.