Board meetings are held regularly and allow the management of the company to meet with key stakeholders in order to discuss crucial business issues. It is crucial that the board of directors stays in contact and on the same page with one another especially during crucial times such as an M&A or an imminent threat. 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 a board meeting is discussion of the company’s strategy direction. The board should discuss the company’s strategies and formulate an action plan to help move forward. It is also beneficial to work together to identify any obstacles the company might face and create plans to overcome them.
During this portion of the meeting, the department heads or committee heads usually present a report to the board. These reports may include milestones, financial data, KPIs such as product roadmaps, progress and organizational performance. Often, the bulk of this section is devoted to reviewing future strategies and evaluating whether or not the organization is on track to reach its goals.
The board will then review any items that have not been resolved or require formal approval. Depending on the business the board could vote on a range of issues such as changing the corporate’s articles of incorporation as well as authorizing certain transactions or ratifying a previous decision taken by the board. It is essential to make sure that a quorum are present to vote on the topic.