Board Meeting Details
Contrary to popular belief your board of directors does not make the majority of the decisions for your company. While they may have authority in certain areas of significant importance (in an investment company that is venture-backed the decisions are usually outlined in the governing documents as well as investment documents) however, the majority of important decisions are decided either by committees or the CEO/management with the input of the Board.
Board meetings tend to be more focused on the planning, policy and oversight functions than on business operations. The decisions of a board can have an impact on the business. Therefore, it’s important to plan and run the board meetings in a manner that encourages discussion and produces results.
To ensure that the board is well-informed it is essential to ensure all board members are aware. To foster productive conversations make sure to distribute the board’s materials prior to the meeting so that attendees can learn about them prior to the meeting. The documents should be brief and clear enough to take no longer than an hour to review.
Then, schedule time for the board to discuss. You might want to give attendees the chance to ask questions or offer brief remarks in a public forum. Also, plan time for presentations by outside stakeholders. Schedule time for the consent agenda, a section where routine or noncontroversial topics can be approved with a simple motion and vote.
In the final meeting of the board, explain the decision-making procedure. Decide if the purpose is to reach consensus or if a formal voting procedure will be used and set clear criteria to evaluate ideas. This will enable everyone to be aware of their roles and the potential consequences of a bad decision.