In order to achieve maximum efficiency in the organization of the work of the board of directors, it is necessary to develop clear and understandable, but effective procedures of their activity. There are quite a few practices used by companies for corporate governance, but there is no one-size-fits-all among them. That is why companies spend a lot of effort to find or develop board procedures. We offer to learn from our article about the best practices that are used by companies to organize the work of the board of directors.
The most popular practices of board of directors meetings organization
The work of the board of directors mostly takes the form of monthly, quarterly or annual meetings. Therefore, most common practices of organizing the work of the board of directors take into account the requirements for holding meetings. To make the board meeting process as efficient as possible, the following tips should be followed:
- Take care of the notice. To make sure the meeting goes as well as possible, it’s important to give all board members advance notice of the meeting. To do this, you can use virtual board notification tools and set them up to make sure that all attendees at a future meeting receive it.
- Ensure a quorum for the meeting. Getting all board members together at the appointed time is an almost impossible task. Using digital technology, getting board members together becomes easier, because you don’t have to travel to the office every time. It is enough to organize an online meeting and give all participants access to a virtual meeting room.
- Establish communication. No board meeting is complete without communication, because discussions and debates are necessary to make the right decision on a particular issue. How well thought-out the discussion process is determines the final outcome of the meeting. In order to find the best solution to an issue, everyone in the meeting should have a chance to speak, so everyone’s opinions can be taken into account.
- Organize voting on resolutions. This method of decision-making will be effective if the relevant minutes of the meeting have been prepared in advance. There is a discussion of the resolution before the vote, and then a vote on the paragraphs of the resolution. In this way, you can ensure effective and quick decision-making.
- Make minutes of the meetings. The procedure for holding meetings of the board of directors can’t do without drawing up minutes. It not only records the final decisions of the board of directors, but can also show the entire course of the meeting. Minutes should be kept as a record of the company’s activities and help to make meeting shorter.
Procedures for meetings of the board of directors should be designed so as to take into account the interests of the company and the purpose of its future development.
Why should attention be paid to finding effective procedures for organizing the work of the board of directors?
The choice of strategy and procedure for holding meetings of the board of directors is a kind of indicator of the effectiveness of its work. When choosing a specific procedure, it is worth considering whether it is consistent with the company’s corporate culture, its development objectives and the interests of its employees. If the chosen procedure is not effective enough, it can cause a crisis in the management of the company, and as a consequence, shake its position in the business world.