Must-Have Documents for the Board Meeting Preparation

Why is it so important for modern boards of directors to think about their own effectiveness? How to improve the efficiency of the board of directors? Which are the must-have documents for the Board Meeting Preparation?

The Procedure for Board Meeting Preparation

While Board Meeting preparation, it is very important to find a balance among the members of the advisory board in order to ensure dynamic and constructive meetings. It is necessary to constantly focus on finding the necessary understanding between directors in terms of common respect and vision, constructiveness, and the ability to challenge the current situation.

The procedure for convening and holding meetings of the board of directors (supervisory board) of the company is determined by the charter of the company or an internal document of the company. The charter or internal document of the company may provide for the possibility of taking into account when determining the presence of a quorum and voting results, the written opinion of a member of the board of directors (supervisory board) of the company who is absent at a meeting of the board of directors (supervisory board) of the company on agenda items, as well as the possibility of making decisions by the board directors (supervisory board) of the company by absentee voting.

The board of directors of the company has the right to re-elect its chairman at any time by a majority vote of the total number of members of the board of directors of the company. A member of the company’s board of directors may be elected to the position of chairman of the company’s board of directors an unlimited number of times. Do not blindly copy the practices of large corporations. Procedures, regulations, and processes take root with difficulty; if only yesterday, all management was tied to the personality of the founder.

Which Are the Must-Have Documents for the Board Meeting Preparation?

Much has been written about corporate governance and the role of boards of directors. To put it simply, there are key strategic decisions that require the approval or advice of the Board of Directors. This requires its members to have a good knowledge of the company’s operating conditions, the market, and general trends in order to be able to make recommendations effectively.

An effective corporate governance system is the basis for sustainable growth and business profitability, which is created by maintaining an adequate balance between the rights of shareholders and the needs of the board of directors and management in the process of managing the company. An analysis of the activities of the most successful companies shows that meeting attendance is important for each member of the board of directors, but there is no direct relationship between it and the effective work of the organization. The preparation of meetings of the Board of Directors, as a rule, includes:

  • the collection of issues for discussion (including draft decisions);
  • the preparation of materials on selected issues;
  • the formation of the agenda;
  • the distribution of notices, etc.

Based on the results of the meeting, a protocol is formed, according to which instructions are issued. The implementation of these processes in manual mode requires significant time costs, work with large volumes of paper documents, lengthy approvals, and most importantly, it makes it difficult to make decisions and control the execution of relevant instructions.

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