Board Meeting Facts are an essential element of corporate governance that can be crucial to the future of a company. A board that is complacent and merely apologizes for what management decides to include on the agenda may not be performing its duties and could put the business at risk.
Board meetings can be long and boring. It’s easy to lose track of the amount of time you spend listening or discussing irrelevant topics. The effectiveness of a meeting is determined by a variety of factors, including the manner in which the agenda is structured, the amount of time that is spent on important issues and topics, as well as the rules that govern the meeting.
Rules for meetings can vary between boards however they should be clearly and consistently stated to ensure transparency and consistency. Certain of these rules are dictated by the law (e.g. quorum requirements) and others can be determined either by the board’s bylaws or by common law.
Attendance records must be clearly documented in the meeting’s minutes, and the proportion of attendees that make up a quorum recorded. It is also important to record who was present, for example, if any board members were absent, or in the event that they were present remotely (see our article meaning of nominee director on Board Participation of Members). It is crucial to write down an outline of each discussion, along with the amount of time spent on each topic. This can help manage time and avoid repeating details at subsequent meetings.