When a company is able to take on investors and then becomes incorporated, the business no longer functions exclusively for its founders. The company is now accountable to an advisory board of directors with the responsibility to ensure the success of the company and allow management to make adjustments if needed. The board meets regularly in order to evaluate the company’s performance, and participate in strategic discussions.
During board meetings directors review company reports in order to evaluate the current state of operations, finances, and management. Discussions also focus on assessing new strategies to increase growth. Strategies could involve re-examining existing policies, adding new product portfolios, or expanding into different regions. The board can also decide to remove or appoint important personnel, managers, and other employees.
To ensure that discussions are productive, board directors should prepare in advance by reviewing the materials prior to the meeting. This will help them focus their attention on the meeting itself. During the meeting, it’s essential to limit discussions of reports to brief summaries. This will allow time to discuss strategic issues. Longer reports should be included as background material or appendices to the meeting notes.
The board should also spend considerable time discussing agenda items that are pending and reading and approving previous minutes of meetings. The board should also consider any compliance or legal requirements regarding the meeting, such as maintaining an attendance log, recording resolutions and ensuring that all documents discussed at the meeting are properly recorded and archived. These procedures ensure the transparency, accountability and credibility in the decision-making process.
