Board Meeting
A board meeting is the meeting of the directors in the company. The directors are responsible for taking care of the affairs and to act on behalf of the company.
Meetings are common in corporations; they will probably be official or not official, depending on the agenda. Meetings with a wider range of participants, such as stakeholders, shareholders, or employees, are considered normal in a company.
However, another meeting category typically happens more frequently, often monthly or quarterly, to discuss ongoing strategic matters, which includes only the board of directors responsible for governing the organization.
Even though these meetings happen in the same place or for the same motive, the participants, agenda, and preparation matter. Let’s discuss the board meeting in more detail.
What is Board Meeting?
The people in the board of directors have the power and responsibility to work on the main decisions of the company. And to work on the decision making, the board of directors need to meet for frequent meetings, called the board meetings.
Additionally, companies have to conduct at least 4 board meetings in a year with no more than 120 days gap between two meetings. For small companies, dormant companies, and sole proprietorships, at least one meeting has to be conducted within half a year, where the gap between the meetings should not be less than 90 days.
The main topics typically discussed in a board meeting include:
- Company performance
- Future Strategies
- Strategic Discussions
- Organizational Changes
- Review previous minutes of meeting
Requirements for a Board Meeting
There are some requirements for a board meeting to be conducted, and they are:
- Adequate Quorum– The minimum number of voting members present
- Right convening authority– The proper authority (company secretary or an authorized person) should be there to conduct the meeting.
- Proper Presiding Officer– The meeting should be headed by the chairman
- Proper Notice– A proper notice has to be served to the members prior to the board meeting.
- Proper Agenda– It is vital to put a proper agenda for the board meeting. No other business is allowed to join unless mentioned in the notice.
By adhering to these requirements, organizations can ensure that their board meetings are effective, focused, and conducive to making informed decisions that drive the company forward.
Best Practices for Creating Board Meeting Agenda
Here, we added some best practices for creating an effective agenda for board meetings:
- Share Agenda – Send out the meeting agenda at least two weeks before the meeting so that directors have sufficient time to review it and familiarize themselves.
- Prioritize Agenda – List items in order of importance or urgency to ensure that major topics can be discussed while having time to cover rest. Make sure to allocate sufficient time for each topic based on its complexity.
- Present supporting Documents – Try to include all supporting documents in the agenda and ensure that they will reach the board members in advance and have access to information.
- Participation – Encourage all board members to share their thoughts and opinions.
- Clear Objective – Always start the meeting with an objective, what it aims to achieve and communicate the same to all members in the meeting so they come prepared.
- Minutes of Meeting – Share the meeting minutes, including all points brought up for discussion, along with the upcoming agenda; this allows the board members to remember things and keep them up to date.
Make Decisions Together That Matters Success
Board meetings are important for the effective governance of organizations and it enables directors to collaborate on strategic decisions and ensure the organization is positioned for steady and sustainable growth.
In case you want to understand board meetings in detail, Eqvista can help you. Eqvista also offers a cap table application that can keep you on top of all dealings and up to date. Check out the application & contact us today!
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