Board meetings are scheduled on a regular basis and allow the management of the company to meet with key stakeholders to discuss important business issues. It is vital that the board of director’s remain in contact and on the same page, especially in critical times such as an M&A deal or a threat to the company’s existence. A regular agenda and structure is helpful to ensure that meetings are focused on the most pressing business issues, rather than rehashing old news.
The most important element of the board meeting is discussion of the company’s strategic direction. The board should discuss strategies and determine an execution plan to help the company move forward. It is also beneficial to work together on any challenges the company may encounter and create a plan for how to tackle them.
During this part of the meeting, the chiefs of departments or committees usually present a report to the board. These reports can include milestones, financial data and KPIs and roadmaps for products, as well as improvements and organizational performance. Typically, the majority of this section is devoted to reviewing future strategies and assessing whether or not the company is on track to meet its goals.
The board will then review any items that have not been resolved or that require formal approval. Based on the company, the board might vote on a variety of subjects like changing the corporate’s articles of incorporation and approving certain transactions or ratifying a decision made by the board. It is important to ensure that a quorum of members are present to vote on the subject.