When running a business, one of its key success factors lie in the organization’s corporate governance. Corporate governance is defined as the collection of mechanisms, processes and relations by which companies operate. In other words, it pertains to the system by which companies are directed and controlled. With the proper implementation of a firm’s corporate governance, numerous benefits may arise such as more efficient processes, reduction in costs and nonconformities, and smoother-running operations.
When an organization involves itself in corporate governance, one of the essential aspects of it includes holding regular board meetings. Despite the fact that each head overlooks and manages his or her own department, there is much more to board meetings than meets the eye. Holding board meetings allow the executives to come together and handle company-wide concerns or affairs that need their attention. With the proper planning and execution, a firm will be able to overcome hurdles and achieve the standards they’ve established. As such, there are a number of pointers a firm must keep in mind to orchestrate successful board meetings.
Give Prior Notice to Board Directors
The most crucial part of board meetings is the presence of its board directors and stakeholders. Given the typical schedule of board directors, every meeting needs proper notice for it to be scheduled to avoid schedule conflicts or the unavailability of the board member. Moreover, adequate time is needed by directors to prepare for the meeting. Failure to do this could result to negative outcomes such as presenters coming unprepared and time being wasted. As such, it is imperative that meetings must be schedule with due diligence.
Prepare a Substantive Agenda
It is a no-brainer that every meeting needs to have an agenda. However, there is a stark difference a substantive and non-substantive agenda. Corporate heads must give sufficient thought on the agenda since these will be tackled by their colleagues, and so it is of their best interest if major issues will be brought up in the meeting. Alongside this is the preparation of the necessary materials that will be reviewed by the board members before the meeting. This is required in order for the directors to understand the context of each concern and subsequently sound off their remarks during the meeting proper. Additionally, board members will be able to highlight aspects of the board material that need to be raised prior to the meeting.
Keep a Detailed Minutes of the Meeting
Each meeting tackles significant topics that require special attention of specific parties with corresponding actions or resolutions. Given this, the minutes taker must be able to create a summary of each discussion topic and provide sufficient information for directors to make it easier on their end if they need to . Deliberations, comments and suggestions must also be included for the benefit of those who were unable to attend the meeting so that they will be able to provide their own insights.
Promote High Engagement in Meetings
As previously mentioned, the presence of board directors is needed in the meeting. This is because their expertise and insights are needed to address the concerns of the company. The board meeting serves as an area of deliberation of top management concerns and issues to be addressed by the firm’s executives. Henceforth, there is a need for high engagement during the board meeting to exchange varying outlooks, opinions, and solutions regarding the topic at hand. Without which, the meeting serves more like a presentation rather than a meeting because the agenda is not met and no resolutions is made.
Draft a Resolution of Corporate Decisions
Another key attribute of a successful board meeting is proper documentation. By drafting a resolution, it aids in structuring the process of the meeting as it documents the business issue, enumerates the decision of the board, and includes the signature of the board members. Resolutions also become a tool in keeping track of corporate activities both old and new. With this, it would greatly assist in planning future meetings and setting new objectives and strategies of the company.
All in all, the aforementioned attributes are just some of the fundamentals in conducting a successful board meeting. It is important to note, however, that planning a board meeting entails preparation, attention to detail and consistency. Nevertheless, when an organization ponders on the best practices for good corporate governance, they must not overlook the exceptional methods they already exemplify and embody as these may add to the upliftment of the company. Bringing all of these to a long-term point of view, a firm would also want to obtain and nurture a respectable executive body who represents the company. When a company is able to accomplish this and find the best system that works for them, there is no doubt that their organization will continue to grow and prosper.