When a company takes on investors and becomes incorporated, the company is no longer solely for its founders. The company reports to an advisory board, whose role is to make sure that the company succeeds and allow management to make the necessary changes. The board meets regularly to evaluate the performance of the company and engage in discussions about strategic issues.
During board meetings directors review company reports to evaluate the current state of financials, operations and management. They also discuss new strategies to increase growth. The strategies can include re-examining existing policies, adding new products to portfolios, or expanding to various territories. The board may also decide on the appointment and removal of managers as well as important personnel.
Directors of the board should review the material prior to the meeting to ensure efficient discussions. This allows them to concentrate their attention on the meeting. During the meeting, it’s essential to limit discussions on reports to brief summaries and allow time to discuss strategic issues. Longer reports should be used as background material or in appendices of the meeting notes.
The board should also spend considerable time discussing agenda items, and reading and approving the minutes of previous meetings. The board should also look at any legal or compliance requirements that could apply to the meeting. This includes maintaining an attendance record, logging the resolutions and ensuring all documents discussed at the meeting are properly recorded and stored. Following these procedures allows transparency as well as accountability and integrity of the decision-making process of the company.
