Board meetings are scheduled regularly events in which the management of the company is able to meet with key stakeholders in order to discuss critical business issues. It is crucial that the board of directors remain in touch and on the same page, especially when critical events occur, 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 the same old news.
The most important aspect of the board meeting is discussion of the company’s strategic direction. The board must discuss strategies and determine an execution plan to encourage progress. It is important to collaborate to identify any obstacles the company may face and develop strategies to overcome them.
Committee heads or department heads will typically provide reports to the board during this segment of the meeting. These reports may include milestones financial results, KPI’s and financial results as well as product roadmaps and progress, and organizational performance. Typically, the majority of this section is devoted to discussing future strategies and assessing whether the company is on track to reach its goals.
The board must then go over any unresolved issues from the past or new items that require formal approval. Based on the particular organization, the board might vote on a variety of topics like changing the corporate’s articles of incorporation, authorizing certain transactions or ratifying a previous decision made by the board. It is important to ensure that a quorum of members are present for the vote.