Board Meeting Facts are an essential element of a good corporate governance system and could be vital to the future of a company. A board that’s naive and merely apologizes for what management decides to include on the agenda might not be doing its job, and could put the organization at risk.
Board meetings can be long and boring. It is easy to get lost in the time spent listening to or discussing irrelevant subjects. The effectiveness of a meeting is influenced by a variety of factors, including the way the agenda is arranged as well as the amount of time spent on substantive questions and topics, and the rules for conducting the meeting.
Rules for meetings can vary between boards but they should be clearly and consistently stated in order to ensure transparency and consistency. Certain rules are mandated by law (e.g. requirements for quorum) however others may be determined either through the board’s own bylaws or by common law.
Minutes of meetings should clearly record attendance records, including the number of attendees who constitute the sufficient quorum. It is also essential to note the number of attendees – when there were any board members absent or any person who was not present remotely. (See our article on Board member Attendance). A brief description of every discussion should be recorded as well as the amount of time spent on each subject. This can help to manage the duration of future meetings and prevent unnecessary repetition of the same information.