Board meetings are scheduled regularly and allow the management of the company to meet with key stakeholders in order to discuss key business issues. It is crucial that the board of director’s remain in touch and on the same page, particularly during critical moments such as an M&A deal 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.
Discussion of the strategic direction of the business is the most important aspect of any board meeting. The board should consider strategies and determine an execution strategy to ensure progress. It is also beneficial to collaborate on any challenges the company may face and develop plans to overcome them.
Department heads or committee chairs will typically present reports to the board during this portion of the meeting. These reports might include milestones, financial results and KPI’s as well as product roadmaps and the progress of the organization. This section is typically dedicated to discussing future strategies and assessing if the organization is on the right track to meet its objectives.
The board should then look over any old unresolved items or new ones that require formal approval. Depending on the organization the board could vote on a wide range of topics including changing the articles of incorporation of the company or authorizing certain transactions, or ratifying a previous decision made by the board. To vote on a topic it is essential that a majority of board members are present.