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 important that the board of directors remain in contact and on the same page, particularly in critical times such as an M&A deal or an imminent threat. A regular agenda and structure help to ensure that meetings are focused on the most pressing business issues rather than rehashing old news.
The most important part of a board meeting is the discussion of the organization’s strategic direction. The board should consider strategies and develop an implementation plan to help the company move forward. It is also beneficial to work together on any challenges the company might face and create strategies to overcome them.
Committee or department heads usually provide reports to the board during this portion of the meeting. These reports might include milestones as well as financial results and KPI’s along with product roadmaps, progress, and organizational performance. This section is typically devoted to discussing future strategies and assessing whether the company is on the right track to achieve its goals.
The board will then have to review any issues that remain unresolved or new items that require formal approval. Based on the particular organization the board could vote on a variety of topics like changing the company’s articles of incorporation, authorizing certain transactions or ratifying a decision taken by the board. To vote on a topic, it is important that a majority of the board members are present.