A board meeting is a crucial setting where important corporate decisions involving management selections, financial control and responses to crises are decided. The board meets to discuss their perspectives and debates their ideas and finally comes to a consensus over critical issues.
An effective Board Meeting requires careful planning and adhering to legal documents such as the company’s constitution and other statutory requirements, including a Quorum. A quorum is a minimum number of people present to conduct business during a meeting, usually two directors, however, a higher number could be outlined in your the governing documents.
The first board meeting of a new year is a foundational event that sets the tone for your organization’s governance structure and strategic direction. The first meeting of the year often includes discussions and the making of decisions that determine the direction of an organization, like adopting an bylaw or naming officers, as well as setting up a financial accounts.
Start your meeting with the most important agenda items to inspire your board members and keep them engaged. Getting sidetracked by new discussion topics can distract from the main issues and waste precious time, so it’s recommended to include an “Area of Focus” or parking space on the agenda.
After discussing old and recent issues, the board usually develops strategies to help advance the company and establishes goals for achieving them. The board also identifies obstacles that hinder progress and comes up with strategies to overcome them. After deciding on future strategies directors go through a list of metrics to track the performance of the company and identify areas for improvement.