If you’re the CEO of a startup or an established company, board of directors meetings are vital to corporate governance. They’re a great way to promote open communication and legal compliance, and also an instrument for collective decision-making. The board chair must establish agendas for meetings and quorums and board members should be prepared to discuss crucial topics and ensure that their discussions are recorded.
Board members share ideas for future strategies for growth like new products or expansions into new markets. Then, they discuss those strategies and ways to evaluate their effectiveness, weighing the advantages and disadvantages of each. The board may decide to adopt a specific strategy and create an action plan for implementing it within a specified timeframe.
The board also talks about basic board evaluations issues and opportunities. This may include evaluating the results of a specific quarter and identifying where things were not working or how to do better next time. It could also include consideration of potential business or investment opportunities that the board thinks are worth considering, including potential risks, costs, and benefits of each.
The board will then vote on any resolutions or motions for procedural purposes, including amending the articles of incorporation, approving certain transactions, or ratifying decisions taken by the board in the past. The board can make any needed changes to its personnel or invite observers to attend the meeting (accredited investors or others with expertise in the field who participate but don’t vote). It is important that the board members are aware of the objectives and procedures of your organization, so they can act accordingly during meetings.