Board Meetings are an essential part of a sound corporate governance process and can be crucial for a company’s future. A board that is complacent and simply rubber stamps what management proposes on the agenda might not be performing its duties and could put the business at risk.
Board meetings can be lengthy and boring. It is easy to forget the amount of time you spend listening or discussing irrelevant subjects. The effectiveness of a meeting is determined by a variety of factors, including the way the agenda is structured as well as the amount of time spent on substantive subjects and issues, and the rules for conducting the meeting.
Meeting rules can vary between boards and the next, but they must be written in a clear and consistent manner that ensures transparency and consistency. Certain of these rules can be imposed by law (e.g., quorum requirements), while others may be determined by the board’s bylaws or common law.
Attendance records must be clearly documented in meeting minutes, with the percentage of attendees that constitute an quorum to be noted. It’s also important to note the number of people present, for instance, if any board members were absent, or in the event that they were present remotely (see our article on Board Participation of Members). A brief description of each discussion should be recorded, as should the amount of time spent on each topic. This will help in managing time at future meetings and prevent unnecessary repetition of past information.
