What Happens at Board of Directors Meetings?
Board of directors meetings are when the key decision makers in a company come together to discuss and make decisions. They also establish the direction for how an company will develop. These decisions can have a huge impact on the business such as determining the management composition to setting company policy and even approving stock option grants. This is a crucial moment for the business and the collective wisdom of the most influential leaders will be needed to guide the company through the complex decisions.
The process begins with determining a meeting date that suits enough members to form a quorum, but also aims to avoid conflicts with the key members who can offer unique perspectives on upcoming issues. Then it’s a matter of creating a package for the board that contains all relevant information, including projections, statistics and financial information for the meeting. Boards can use online tools like Google Docs to create their document, which can be cooperative and include a vote system that allows for quick decisions.
The board examines the minutes of its previous meeting at the time of the actual meeting and then discusses any new information that has been brought up. Directors who have potential conflicts of interest are requested to disclose these conflicts and disengage themselves from the discussion. After the main issues are discussed, the board may adjourn if any other procedural issues are settled.
It’s easy to forget that your board members, while powerful, are also human beings. They will have their own opinions and strengths. They might not be as intelligent or savvy as you think they could be and frustrated, and like everyone else, they’ll be prone to whining (even the very best ones! ).
